President Mohamed Nasheed has said the prices of goods will drop after the government implements a plan to waive import duties on certain products, starting January 2012.
Yesterday, Nasheed paid visits to several Male’ shops to observe the impact of the Goods and Services Tax (GST), which went into effect on Sunday, October 2.
Several shop owners said they had noticed several difficulties from the start of the GST, but that Maldives Inland Revenue Authority (MIRA) was taking necessary actions to resolve these issues.
Others noted that the majority of businesses had been well prepared for the new tax system.
The tax system was applied to the Maldives as a means of increasing state income, which in turn is expected to support the growth and development of national public services such as social security, public welfare, and health coverage.
Nasheed said a more efficient tax administration system would be established once legal formalities are completed.