European businesses express concern over decision to tax foreign tour operators: Nasheed
16 ސެޕްޓެމްބަރު 2026 | ބުދަ 18:10Former President Mohamed Nasheed has highlighted concerns from European businesses regarding the decision to levy taxes on foreign travel agents, warning that the imposition of multiple taxes and mandatory currency conversion requirements could lead the Maldives toward national bankruptcy.
Former President Nasheed. | MDP Secretariat
MDP Chairperson and former President Mohamed Nasheed has stated that major European tour operators and business leaders are contacting him to express their concerns regarding the decision to impose taxes on foreign travel agents and tour operators.
In a post on X on Wednesday, former President Nasheed stated that major European investors have been sharing their concerns with him regarding the new requirement to convert 40 percent of foreign currency earnings into local banks. He noted that after covering daily operational expenses and loan repayments, businesses are left with insufficient funds to pay out dividends.
President Nasheed stated that tour operators are already paying 20 percent GST in Europe, and since companies registered in the Maldives also pay TGST to MIRA, imposing additional layers of taxation would become an unbearable burden.
Furthermore, President Nasheed stated that the government does not appear to be addressing these concerns, adding that the Maldives is currently on the brink of bankruptcy.
The Parliament has passed a government-proposed amendment to the law, effectively ending the exemption that limited Goods and Services Tax (GST) collection to businesses registered only 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 addressing these grievances.
