Maldives new 17% tax on travel intermediaries faces industry opposition

The National Association of Travel Agencies (ANAV) is calling for the suspension of a new tax regime in the Maldives, scheduled to take effect on October 1. The measure imposes a 17% tax on operations related to the destination, targeting foreign intermediaries including travel agencies, tour operators, booking platforms, bed banks, and charter operators.

ANAV argues that the tax targets the margins and service fees of companies promoting the Maldives internationally. The association expressed particular concern regarding the lack of a minimum revenue threshold for local tax registration, noting that small agencies could face the same administrative and fiscal burdens as large international platforms regardless of their business volume.

Miguel Quintas, president of ANAV, stated that a tourist destination should facilitate sales rather than creating a “parallel fiscal administration” for foreign operators. The association is advocating for several changes, including the establishment of a minimum registration threshold, the exclusion of margins from intermediaries based outside the Maldives, and a consultation process with international industry stakeholders.