Bill to abolish tax collection from foreign tour operators sent to committee
21 އޮކްޓޯބަރު 2026 | ބުދަ 08:07Following mounting concerns within the tourism industry regarding recent amendments to the GST Act requiring foreign tour operators to pay taxes, the government has decided to reverse the decision. The Parliament has officially accepted a new legislative amendment to implement this change and has forwarded the bill to the Committee of the Whole House for further review.
A session of the People's Majlis is currently underway. | Majlis
The government has decided to abolish taxes on foreign tour operators, with the Parliament accepting the proposed legislative amendment and forwarding it to the Committee of the Whole House for review.
The government introduced amendments to the foreign exchange regulations and began taxing foreign tour operators on October 1. However, following mounting concerns from the tourism industry regarding the GST Act amendments aimed at taxing foreign travel agents, the President later decided to reverse the decision. This reversal came just three days after the law had come into effect.
The government decided to introduce these changes following significant criticism, with concerns raised that the law could adversely impact the Maldives' economy shortly after its implementation.
The bill was put to a vote during Wednesday's People's Majlis sitting. It was accepted with a majority of 38 members in favor, while 8 members voted against it.
Given that tourism is the most vital sector of the Maldivian economy, many had already been calling for this change due to concerns that the industry could face significant risks.
The government-sponsored bill to abolish taxes on foreign tour operators 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 mandate the collection of taxes from foreign tour operators.
