News Desk
The administration of President Dr. Mohamed Muizzu has decided to repeal newly implemented tax laws on foreign tour operators, stepping back from the policy just three days after enforcement began.
The decision to roll back the tax framework was announced by Tourism Minister Mohamed Amin during the official ceremony marking World Tourism Day.
The legal amendment authorizing the collection of Tourism Goods and Services Tax (TGST) from offshore tour operators, travel agencies, and online booking platforms was officially gazetted on August 31. Following the gazetting, the Maldives Inland Revenue Authority (MIRA) formally initiated tax collection under the new regulations on Thursday, October 1.
Prior to the passage and implementation of the law, industry stakeholders and international partners expressed strong opposition to the tax scheme. Major international players—including Russia’s largest tour operator as well as key travel trade groups in India—raised formal concerns with the Maldivian government, warning of severe disruptions to destination bookings and market competitiveness. Further pressure mounted as international travel bodies, including the Association of British Travel Agents (ABTA) and the European Travel Agents’ and Tour Operators’ Associations (ECTAA), called on the government to pause the rollout.
In response to widespread pushback from international markets and local tourism stakeholders, the government has agreed to suspend the framework, postponing its implementation until September 1, 2027, to allow for broader consultation and review.
