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The Maldives Association of Travel Agents and Tour Operators (MATATO) has voiced strong concern over proposed GST amendments targeting foreign booking platforms, warning that the rules risk damaging local businesses and international partnerships without proper consultation.
News Desk
A meeting between MATATO and Guest house Association - Photo: MATATO
MALÉ: The Maldives Association of Travel Agents and Tour Operators (MATATO) has expressed deep concern regarding proposed amendments to the Goods and Services Tax (GST) Act targeting online booking platforms and foreign operators.
While MATATO supports a fair and equal tax framework, the association stated that the current bill fails to address the concerns of Maldivian travel agents or provide meaningful protection for local businesses.
The main concern raised by the association is the lack of proper consultation by the Maldives Inland Revenue Authority (MIRA) with local industry stakeholders prior to introducing major legislative changes. MATATO emphasized that foreign operators form a vital distribution network for local agents, and pushing burdens onto foreign partners could lead them to shift business to competing destinations or direct resort bookings.
Key concerns, operational risks, and recommendations highlighted by MATATO include:
Implementation Timeline: The proposed implementation date of October 1, 2026, creates major challenges, as contracts, package rates, and confirmed bookings for the upcoming peak season are already finalized.
Enforcement Challenges: Requiring foreign entities without a physical presence in the Maldives to register with MIRA creates severe practical enforcement issues.
Confidentiality Risks: Mandating local agents to share client and international partner databases poses high risks to trade secrets, especially given developing data protection frameworks.
Proposed Recommendations: MATATO urges the government to establish a registration threshold for foreign entities, grant a reasonable transition period, clearly separate B2B and B2C transactions, and conduct a full impact assessment before implementation.
The association urged the government and MIRA to pause enforcement and engage in genuine dialogue with local travel agents, resorts, and tax experts to protect the country’s economic competitiveness.
