MP Mauroof: Proposed GST Amendments Will Increase Pressure on Businesses

Mauroof Zakir, the Member of Parliament for the Kendhoo constituency, has stated that the proposed amendments to the Goods and Services Tax (GST) Act will escalate pressures on businesses.

During Sunday's People's Majlis sitting, MP Mauroof spoke in support of the government-sponsored amendment to the Goods and Services Tax (GST) Act, introduced by Kulhudhuffushi North MP Mohamed Dawood. Mauroof emphasized that the tax system must evolve alongside the changing economy, stressing the urgent need for measures to curb tax evasion and fraudulent practices by certain entities.

However, highlighting the concerns and implications of passing this amendment, MP Mauroof noted that small and medium-sized enterprises (SMEs) frequently face detrimental consequences, such as heavy fines, due to inadvertent non-compliance caused by such abrupt changes. He further emphasized that these situations significantly increase the operational strain on businesses.

When implementing significant changes, it is essential that the affected parties and businesses are clearly identified and informed. Businesses must be aware of how these shifts impact them. If these changes are not properly communicated, small and medium-sized enterprises often inadvertently face situations where they are subjected to heavy fines and substantial losses due to unintentional non-compliance.

Mauroof Zakir

MP Mauroof stated that the lack of clarity regarding the amendments proposed in this bill is a matter of significant concern.

Emphasizing the need for clarity regarding the changes affecting businesses, MP Mauroof stated that it must be made clear which entities are required to re-register and what specific adjustments will be made to the GST payment brackets for those already registered.

Member Mauroof further emphasized the need to consider the impact of these amendments on the cost of goods. He also highlighted the importance of consulting with relevant stakeholders when implementing changes to tourism-related taxes.

MP Mauroof stated that it is essential for both the Parliament and the Maldives Inland Revenue Authority (MIRA) to ensure that business owners are adequately informed regarding this amendment.

Furthermore, Mauroof stated that the belief that the economy can be stabilized simply by increasing taxes is a misconception. The member also emphasized the importance of consulting with relevant stakeholders during the committee stage and clarifying the impact these changes will have on the general public.