The government has postponed the implementation of the 17 percent Tourism Goods and Services Tax (TGST) on foreign travel agencies, tour operators and offshore booking platforms until 1 April 2027, Tourism and Civil Aviation Minister Mohamed Ameen announced tonight.
Ameen made the announcement during the National Tourism Day 2026 gathering at Barceló Nasandhura, attended by senior government officials and tourism industry stakeholders.
The measure applies the Maldives’ existing 17 percent TGST to tourism products and related booking services supplied by overseas businesses without a permanent establishment in the Maldives. The framework covers foreign tour operators, travel agents and offshore booking platforms selling accommodation, meals, transportation and other tourism-related services in the country.
The eighth amendment to the Goods and Services Tax Act, ratified by President Dr Mohamed Muizzu on 31 August, established the legal framework for collecting TGST from offshore tourism businesses under the destination principle.
The measure had been scheduled to take effect on 1 October 2026, according to the ratified amendment and contemporaneous industry reporting.
Under the framework, the 17 percent tax applies to covered offshore tourism transactions, with industry guidance describing the taxable amount for intermediaries as their margin rather than the entire value of the holiday package.
The tourism industry had raised concerns ahead of implementation, including over pricing, existing contracts, compliance costs and the competitiveness of the Maldives. The Maldives Association of Travel Agents and Tour Operators (MATATO) launched a survey in September to assess the potential impact on local and international tourism businesses.
The government’s decision gives overseas tourism partners additional time before the new TGST framework takes effect.
