President ratifies goods and services tax to offset new land tax scheme
09 Sep 2010, 5:49 PM
President Mohamed Nasheed has ratifed parliament’s Tourism Goods and Services Tax (GST) Bill, which will impose a levy on most products and services sold to tourists by the resort industry.
Once implemented, the GST will apply to room rates charged by resorts, hotels, picnic islands, guest houses and tourist vessels, as well as all goods and services sold to tourists by these businesses.
The GST will also apply to domestic transportation of tourists, travel planner charges, and goods and services sold to tourists by dive schools, shops, spas and water sports facilities by resorts, guest houses and tourist vessels.
Deputy Minister for Tourism Mamduh Waheed explained the new legislation, which would impose a tax of approximately 3.5 percent, was intended to the offset the revenue lost through standardising land tax charged to resorts and scrappage of the ‘bed tax’.
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