MP Ibrahim calls for review of proposed tax hike on foreign agents to prevent potential damage to tourism sector
18 ސެޕްޓެމްބަރު 2026 | ހުކުރު 07:33The NGO "Destination Future" has called for a review of the decision to impose a 17 percent tax on foreign travel agents, warning that it poses a significant threat to the tourism industry. MP Ibrahim highlighted concerns that the policy was implemented without adequate research and could lead to a decline in tourist arrivals. Consequently, he has requested the Speaker of Parliament to ensure the Public Accounts Committee conducts an urgent review of the matter.
A group of tourists disembarking from a public ferry. | getty images
Member of Parliament for North Galolhu, Mohamed Ibrahim, has sent a formal letter to Speaker Abdul Raheem Abdulla requesting an urgent review of the recent amendments to the GST Act. The legislator is seeking a parliamentary inquiry through the Public Accounts Committee into the new policy, which mandates a 17 percent tax on foreign travel agents effective this October.
Destination Future, a non-governmental organization dedicated to promoting Maldivian tourism while preserving the environment and local culture, has warned in a recent report that introducing new taxes during a period of declining tourism performance poses a significant threat to industry businesses. Consequently, the organization has called on the government to suspend the implementation of the 17 percent tax on foreign travel agents and urged for a legislative amendment to abolish the provision entirely.
In a letter addressed to the Speaker of Parliament, MP Ibrahim highlighted that the recent legislative amendment to collect taxes from foreign tour operators was enacted without conducting comprehensive research in coordination with relevant international stakeholders. He further emphasized the importance of the Parliament reviewing this decision, noting that the changes were implemented based solely on projected revenue figures without considering the potential adverse impacts on the tourism industry.
Furthermore, the member noted that while the government estimates an annual revenue of MVR 1.6 billion from foreign operators, it is essential to audit the details of taxpayers registered as tour operators. The member also emphasized that Parliament must identify the potential challenges in enforcing this legislation.
He further noted in the letter that as major international travel industry associations express their concerns over these changes, it is imperative to ensure that this does not lead to a further decline in tourist arrivals to the Maldives.
In the letter, he requested that the Public Accounts Committee of the People's Majlis conduct an urgent review and investigation into the matter, taking into account the findings highlighted in the Destination Future report.
