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The government plans to reduce spending and increase revenue through new measures, including taxation changes, as falling tourism arrivals and higher import costs pressure state finances
Mariyam Adheela
Finance Minister Hassan Zareer
MALÉ: Finance Minister Hassan Zareer says the government will reduce expenditure and introduce measures to boost state revenue as lower tourism arrivals and rising import costs put pressure on the economy.
Speaking at a media briefing at the President’s Office, Zareer said tourism arrivals have fallen by around 30 percent amid the Middle East conflict, while the cost of importing fuel and essential goods has increased.
He said the government is working to reduce unnecessary spending while exploring new ways to increase revenue and foreign exchange earnings.
Zareer highlighted the introduction of the destination principle, which would allow the Maldives to collect taxes on services sold overseas but provided in the country.
He said some resorts advertise rooms for USD 100–200, but overseas booking platforms sell the same rooms for as much as USD 1,000. Under the new system, taxes would be based on the actual selling value.
Zareer said further legal changes are also being considered to strengthen government revenue and improve the country’s financial position.
