GST from telecommunication services comes into effect

A six percent Goods and Services Tax (GST) on telecommunication services come into effect as of 12:00 a.m. today, May 1, 2014.

The eleventh amendment bill to the Goods and Services Tax Act, allowing the collection of a 6 percent taxation on telecommunication services, was published in the Government Gazette on March 25.

The tax applies to all communication services except for postal services provided by a postal service provider registered with the relevant Government authority or State institution, according to the Maldives Inland Revenue Authority (MIRA) website.

The tax for telephones will be included in the telephone bills, or added to the top-up vouchers.

The introduction of telecom GST was an initiative taken by the new government to increase revenue.

The State’s principal tax collector, MIRA estimates to gain MVR 110 million through Goods and Services Tax this year, reported local media Sun Online.