Maldives postpones 17% tourism tax for foreign agencies

The Maldivian government has announced a postponement of the 17 percent Tourism Goods and Services Tax (TGST) for foreign travel agencies, tour operators, and offshore booking platforms until April 1, 2027. This decision follows significant objections from international tourism stakeholders regarding the Eighth Amendment to the GST Act, which sought to extend the tax to inbound tourism products and overseas services.

Minister of Tourism and Civil Aviation Mohamed Ameen stated that President Dr. Mohamed Muizzu decided to revise the deadlines and procedures after receiving proposals from industry stakeholders. The Maldives Association of Travel Agents and Tour Operators (MATATO) welcomed the move, noting that consultation is vital to maintaining the country’s competitiveness.

Separately, tourism pioneer Hussain Afeef expressed support for the government’s plan to develop at least 10 state-owned resorts over the next three years. This initiative aims to distribute tourism profits directly to Maldivian citizens, with an estimated annual return of USD 400 per resident starting in 2030.