Maldives tourism tax sparks push for delay by Indian operators

The Indian Association of Tour Operators (IATO) has requested a one-year delay regarding the implementation of the Maldives’ new Tourism Goods and Services Tax (TGST). Amendments to the Goods and Services Tax Act, passed in late August, require foreign tour operators, travel agents, and online booking platforms not registered in the Maldives to pay a 17 per cent TGST starting 1 October.

IATO President Ravi Gosain expressed concerns in a letter to Tourism Minister Mohamed Ameen, stating that the new tax and compliance requirements could increase costs for Indian operators at a time when global tourism margins are already under pressure. The association noted a lack of adequate consultation regarding the economic impact and administrative challenges of the amendments.

Separately, the Maldives Inland Revenue Authority (MIRA) has issued a reminder to resort operators that fourth-quarter Tourism Land Rent payments are due today. This rent is a significant non-tax revenue source for the Maldivian government. Late payments are subject to daily statutory fines and interest charges.