Maldives, once considered a "tax haven," has now transformed into a "tax hell" :Shaaz Waleed.

The Maldives, once considered a "tax haven," has now transformed into a "tax hell," according to Mohamed Shaaz Waleed, the Managing Director of Resort Life.

Shaaz made these remarks while speaking on RaajjeTV’s dollar debate. He criticized the new regulation ratified by President Dr. Mohamed Muizzu—which mandates resorts to exchange 40 percent of their foreign currency earnings through local banks—describing it as incoherent and impractical. He further questioned the feasibility of tax collection by MIRA, noting that many tour operators conduct their business from abroad rather than being based in the Maldives.

Foreigners work in compliance with the laws and regulations of their respective countries and fulfill all their tax obligations. If an additional tax is to be levied on those visiting the Maldives, the mechanism and justification for such a tax must be clear. For instance, if an immigration counter were established to charge a 17 percent fee on hotel stays simply because a person is visiting the Maldives, it would be transparently evident that the money is being collected directly from them.

Shaaz Waleed

Shaaz stated that by enacting such laws, Maldivian leaders are effectively telling tour operators to stop sending tourists to the country. He further noted that tourists seek a seamless and convenient experience when choosing to visit the Maldives.

During our discussions today, MIRA noted that the Maldives was previously regarded as a tax haven. I responded by stating that it has now transformed into a tax hell. The reality is that the Maldives has become a tax hell, and one would have to be a fool to leap into such a situation. Consequently, the government is essentially telling tourists not to visit the Maldives.

Shaaz Waleed

Noting that only a one-month notice was provided before the implementation of the new regulations, Shaaz highlighted that there is currently no mechanism to pay or collect taxes from foreign tour operators through MIRA, nor is there a way to access information regarding the process. Shaaz further warned that if the government continues to implement such flawed policies, the tourism industry—which is already in decline—could face a sudden and even more severe collapse.

The Parliament has passed a government-proposed amendment to the law, ending the exemption that restricted the collection of Goods and Services Tax (GST) solely to businesses registered in the Maldives. This change ensures that GST will now be levied on all taxable goods and services provided within the country. Despite widespread public concern regarding the passage of this bill, President Muizzu has ratified the legislation without further review.