Just three days after implementing a legal amendment requiring foreign tour operators to pay Tourism Goods and Services Tax (TGST), the government has decided to revise the law again following industry concerns.
The amendment aimed at collecting tax from foreign tour operators was gazetted on August 31. In accordance with this change, the Maldives Inland Revenue Authority (MIRA) began collecting the tax last Thursday.
The decision by President Mohamed Muizzu to amend the law regarding taxation on foreign tour operators was announced by Tourism Minister Mohamed Ameen during the official ceremony held to mark Tourism Day.
"In relation to this matter, several industry leaders and numerous travel agents have submitted requests to the President. The President has now decided to bring immediate changes to the TGST Act based on the destination principle," Ameen said.
Speaking at the ceremony, Ameen noted that major industry concerns had been shared with Muizzu following the passage of the tax requirement for foreign tour operators.
"We introduced amendments to the law that included additional components for paying TGST under the destination principle. Along with this, we noted concerns from the industry as well as from travel agents," the Minister said.
Even prior to the passage of the law to tax foreign tour operators, many stakeholders had expressed their reservations. Russia's largest tour operator sent a letter to the Maldivian government expressing concern, while Indian tour operators also voiced similar apprehensions.
