President Abdullah Yameen Abdul Qayyoom has stated that part of GST returns owed to MIRA is lost, when compared to the number of businesses in the country.
He made the statement in his keynote address in the ceremony held to mark the 125th anniversary of Customs Services.
President Yameen said that the decision need to be taken on whether GST or import duty was better for the local economy. He also said that the two options were apt for the nation and that the only difference was between the mechanism and strategy. He added that unless proper audits are undertaken from all the businesses, we cannot ascertain the total amount of GST cannot be determined.
President Yameen said that the only issues arising from Customs duties was the valuation of products. He added that world accepted systems were being adapted into Customs. Therefore, majority of the revenues will be brought in from GST and customs duties. As the Government had targeted for economic expansion, the per capita income is at around US$ 6,000 or US$7,000, President Yameen noted that this was a huge amount compared to the region.
Many have noted that the prices of the products had not decreased even though the import duties were slashed in favor of GST. The 20 percent import duty was slashed to be replaced by the eight percent GST, which even though translates to a 12 percent gap, had not impacted the prices of average prices.
Part of GST returns is lost: President Yameen
