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Major European tour operators and travel associations have urged Maldivian authorities to delay or repeal recent amendments enforcing a destination-based Goods and Services Tax on foreign booking platforms and offshore travel agents.
News Desk
Tourists in Maldives - Photo: Corporate Maldives
MALÉ: European tour operators and travel associations have called on the Maldivian government to delay or repeal the 8th Amendment to the GST Act, which introduces destination-based taxation on foreign booking platforms and travel agencies.
Key travel associations, including France’s Les Entreprises du Voyage (EDV) and Syndicat des Entreprises du Tour Operating (SETO), alongside Italy’s ASTOI Confindustria Viaggi, expressed deep concern over the financial and administrative burdens imposed by the law.
President Dr. Mohamed Muizzu ratified the amendment on August 31, 2026, with enforcement scheduled to begin on October 1, 2026.
In a joint letter to Commissioner General of Taxation Fathimath Ameezha, French travel bodies explained that tour operators purchase hotel rooms a year in advance and sell fixed packages well ahead of the season. Under European consumer protection laws, operators cannot retroactively increase prices on previously sold holiday packages to absorb the new 17 percent TGST levy.
Italian association ASTOI highlighted that Italy remains one of the top source markets for Maldivian tourism, sending over 153,000 tourists annually. The association noted that while the Maldives has full authority over its fiscal policy, enforcing the law on short notice without clear registration, invoicing, and reporting guidelines creates severe economic uncertainty.
To prevent severe commercial disruption, the associations urged the government to hold formal consultations with the industry and postpone the implementation of the new GST requirements until an agreed date in 2027.
