Maldives hikes TGST, blames debt for downgrade amid dollar crunch

The Maldives Inland Revenue Authority (MIRA) raised the Tourism Goods and Services Tax (TGST) from 16% to 17%, effective July 1, 2025. The government attributes the country's credit rating downgrade to inherited debt rather than COVID-19 spending, while a deepening US dollar shortage prompts India to extend a INR 30 billion currency swap facility.

The Maldives Inland Revenue Authority (MIRA) raised the Tourism Goods and Services Tax (TGST) from 16% to 17%, effective July 1, 2025. The government attributes the country's credit rating downgrade to inherited debt rather than COVID-19 spending, while a deepening US dollar shortage prompts India to extend a INR 30 billion currency swap facility.

[{'text': 'MIRA increased the Tourism Goods and Services Tax (TGST) from 16% to 17%, effective July 1, 2025, following the Seventh Amendment to the Goods and Services Tax Act.', 'confidence': 0.95, 'source_article_ids': ['2507', '3039']}, {'text': "Government Spokesperson Mohamed Hussain Shareef stated that the credit rating downgrade was driven by the country's debt burden and borrowing practices, not COVID-19 spending.", 'confidence': 0.95, 'source_article_ids': ['3730', '3039']}, {'text': 'Maldives is facing a US dollar shortage; Bank of Maldives sold USD 345 million more than purchases over five months, and expatriate workers remitted USD 660.8 million in 2025.', 'confidence': 0.9, 'source_article_ids': ['2962']}, {'text': 'India extended a INR 30 billion currency swap facility to help ease the dollar crunch.', 'confidence': 0.95, 'source_article_ids': ['2962', '3039']}]

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