Bill submitted to Parliament to exempt foreign tour operators from taxation
20 އޮކްޓޯބަރު 2026 | އަންގާރަ 08:14The government has submitted a bill to Parliament seeking to repeal a recent amendment to the GST Act that imposed taxes on foreign tour operators, following mounting concerns from the tourism industry. This legislative move aims to mitigate potential adverse impacts on the Maldivian economy and eliminate the operational challenges currently faced by international travel agents.
A sitting of the People's Majlis. | Majlis
The government has decided to abolish taxes levied on foreign tour operators and has submitted a bill to Parliament to amend the law accordingly.
The government introduced amendments to the foreign exchange regulations and began collecting taxes from foreign tour operators on October 1. However, following mounting concerns within the tourism industry regarding the GST Act amendments aimed at foreign travel agents, the President subsequently decided to reverse the decision. This reversal came just three days after the law had come into effect.
The government decided to introduce this change following significant criticism within a short period of the law's implementation, amid concerns that it could lead to adverse effects on the Maldives' economy.
As tourism serves as the backbone of the Maldivian economy, many had already been calling for these changes due to concerns that the industry could face significant risks.
The government-sponsored bill to exempt foreign tour operators from taxation was introduced to Parliament by Ibrahim Didi, the Member of Parliament for the Kolamaafushi constituency. The proposed amendment seeks to repeal all existing statutory provisions that require foreign tour operators to pay taxes.
