Maldives Plans Further TGST Amendments Following Industry Concerns

04 October 2026, 08:07

The Maldives government plans to amend the law governing the collection of Tourism Goods and Services Tax (TGST) from foreign booking platforms, tour operators and travel agents, Tourism Minister Mohamed Ameen has said.

Speaking at a ceremony marking World Tourism Day, Ameen said the Ministry had received numerous complaints from the tourism industry and foreign tour operators following the ratification of recent amendments to the tax law.

He said the President had decided to introduce further changes soon, based on the destination principle. Ameen did not outline the proposed changes or specify when they would be introduced.

The recent amendments established rules for collecting GST on services provided by offshore booking platforms, foreign tour operators and travel agents handling bookings for tourists visiting the Maldives. The measures were intended to address difficulties in tax collection and strengthen the existing framework.

The measures were previously estimated to generate an additional MVR 1.6 billion in annual government revenue, including MVR 299.3 million from foreign travel agents and MVR 1.3 billion from foreign tour operators.

Some European tour operators have reportedly suspended bookings for the Maldives in response to the amendments, adding to concerns within the tourism industry.

Maldives Plans Further TGST Amendments Following Industry Concerns

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