The government of the Maldives has submitted a bill to the parliament to abolish the 17% tax on foreign travel agencies, tour operators, and booking platforms. According to a statement from the World Travel Agents Associations Alliance (WTAAA), the bill aims to exempt these businesses from the tax, refund the amounts collected since October 1, and release them from any other obligations for this period.
The tax, which was introduced as part of the eighth amendment to the law on the tax on tourist goods and services (TGST), required operators without an establishment in the Maldives to register with the tax authority, the Maldives Inland Revenue Authority (MIRA). The WTAAA noted that there was no threshold, and even a single booking would require registration. This meant that many businesses would have to comply with the tax regulations.
Otto de Vries, executive director of the WTAAA, stated that the decision to abolish the tax is a good one, and the organization welcomes the government’s willingness to listen. He explained that the members of the WTAAA never contested the right of the Maldives to tax tourism on their territory but could not accept a model that required businesses worldwide to register, declare, and pay a foreign tax while being subject to their own laws.
The Syndicat des entreprises du tour-opérating (SETO), Les Entreprises du Voyage (EDV), and the Association européenne des agences de voyages et des tour-opérateurs (ECTAA) had mobilized against the tax, writing to the Maldivian authorities. The WTAAA, ECTAA, ABTA, ASTA, and ATIA had also addressed a joint letter to the Minister of Tourism and Civil Aviation, Mohamed Ameen, requesting at least a postponement, protection of existing bookings, and exemption for agencies selling on behalf of a tour operator.
The WTAAA advises professionals to keep records of all payments made since October 1, as the organization expects the law to be published without delay and the MIRA to make refunds rapid and simple for all businesses that have paid in good faith. The government had previously announced the postponement of its application to April 1, 2027.
Otto de Vries concluded that travel agents have spent years developing demand for the Maldives and want to continue selling the destination. The WTAAA is now waiting for the parliament to vote on the bill, which will come into effect once it is voted, ratified, and published in the official Maldivian journal.