GST Act Amendment Aims to Curb Loss of Tourism Revenue: Finance Ministry

The Finance Ministry will amend the Goods and Services Tax Act (Act 10/2011) starting mid-2025 to adopt the destination principle, aiming to curb tourism revenue losses. This change taxes goods and services at the point of consumption, closing loopholes and taxing online transactions. Under the current system, the state loses about 70% of potential tax revenue when rooms are sold through foreign agents. Countries like Sri Lanka, Australia, Canada, and Singapore use this principle. The Muizzu administration also plans to increase the Airport Development Charge and green tax to maximize revenue.

The Finance Ministry will amend the Goods and Services Tax Act (Act 10/2011) starting mid-2025 to adopt the destination principle, aiming to curb tourism revenue losses. This change taxes goods and services at the point of consumption, closing loopholes and taxing online transactions. Under the current system, the state loses about 70% of potential tax revenue when rooms are sold through foreign agents. Countries like Sri Lanka, Australia, Canada, and Singapore use this principle. The Muizzu administration also plans to increase the Airport Development Charge and green tax to maximize revenue.

The Finance Ministry will amend the Goods and Services Tax Act (Act 10/2011) starting mid-2025 to adopt the destination principle, aiming to curb tourism revenue losses. This change taxes goods and services at the point of consumption, closing loopholes and taxing online transactions. Under the current system, the state loses about 70% of potential tax revenue when rooms are sold through foreign agents. Countries like Sri Lanka, Australia, Canada, and Singapore use this principle. The Muizzu administration also plans to increase the Airport Development Charge and green tax to maximize revenue.

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