The Maldives Association of Travel Agents and Tour Operators (MATATO) has welcomed President Dr Mohamed Muizzu’s decision to introduce changes to the tourism tax framework following concerns raised by the industry.
Tourism and Civil Aviation Minister Mohamed Ameen confirmed that the President had decided to amend the framework after tourism stakeholders and travel agents raised concerns over deadlines, procedures and the implementation of changes linked to the Tourism Goods and Services Tax (TGST).
The government’s move follows concerns over amendments extending the 17 percent TGST framework to certain inbound tourism products and overseas agency and booking services. International travel industry groups and operators have raised objections over the requirements and their potential impact on selling Maldives holidays.
MATATO described the government’s willingness to respond to industry concerns as a positive development.
The association said it has been engaging with local and international stakeholders in recent weeks while conducting an industry-wide impact survey to assess the commercial and operational implications of the changes.
“We see this as a positive and important step. Tourism has always succeeded when government and industry work together through consultation and dialogue,” MATATO Secretary General Suood said.
He said MATATO remains ready to support the government in developing a balanced framework that safeguards state revenue while ensuring the Maldives remains competitive and easy to sell in international markets.
MATATO said it now looks forward to further consultations with the government, Maldives Inland Revenue Authority (MIRA), local tourism stakeholders and international travel partners as the proposed amendments are developed.
Minister Ameen said the President had decided to make changes to the TGST legislation “very soon”, although the specific amendments and revised implementation arrangements have yet to be announced.
