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Tourism Minister Ameen speaking at Tourism Day ceremony - Photo: Tourism Ministry

Minister of Tourism Mohamed Amin revealed last night that President Mohamed Muizzu decided to amend the newly implemented tax law requiring offshore travel operators and booking platforms to pay 17 percent Tourism Goods and Services Tax (TGST).

Speaking at a special ceremony held to mark National Tourism Day, Ameen acknowledged that the recent legislative amendment triggered widespread concern across the tourism sector.

Under the August amendment, offshore travel agents, booking sites, and tour operators without a physical office in the country were required to register with the Maldives Inland Revenue Authority (MIRA) and collect a 17 percent TGST based on destination principal tax principles.

Ameen explained that President Muizzu made the decision to revise the Destination Principal framework after receiving numerous formal requests and complaints directly from resort executives, local travel agents, and foreign tour operators.

“Industry leaders and travel agents have submitted many requests to President Mohamed Muizzu regarding this issue,” Ameen stated.

“The President has currently decided to bring changes to the TGST law under the destination principal rule very soon, and I am sharing this information for your awareness.”

The minister did not provide further technical details regarding the specific changes planned for the tax framework.

The announcement follows mounting international pressure, including warnings from European tour operator associations to stop selling Maldivian holidays, alongside a formal call from the Russian Union of Travel Industry (RST) urging the government to withdraw the enforcement.