The Maldives Association of Travel Agents and Tour Operators (MATATO) has backed the government’s fiscal reforms, including changing the law to require businesses earning in dollars to pay taxes and other fees to the state in dollars.
In a press release, MATATO said collection of tax in dollars is "imperative and a change that will boost the economy."
"Our focus is on ensuring that the implementation of these reforms aligns with the practical realities of the tourism sector," it read.
MATATO said it recognizes the importance of effective fiscal policies and the need for reforms that enhance revenue collection and address inefficiencies within the system.
"We believe the time is critical for this long needed reform and we fully support the government's broader fiscal objectives," it added.
The association expressed commitment towards working with the government to ensure that changes to tax laws "are implemented in a way that benefits the Maldives' economy while safeguarding the interests of the tourism sector."
The government has decided to take a number of measures to cut costs. They include decreasing the number of political employees and increasing the duration between elections.
