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The Maldives and Malaysia signed key bilateral agreements on defense and Islamic affairs as Malaysian Prime Minister Anwar Ibrahim concluded his official state visit, which also secured a 100 million dollar financial facility.
News Desk
MALÉ: Former President and opposition Maldivian Democratic Party (MDP) Chairperson Mohamed Nasheed revealed today that major European businesses and tour operators are calling him directly to express severe anxiety over new tourism taxes and monetary regulations.
In a statement posted on X, Nasheed warned that these mounting industry fears could ultimately push the Maldives to economic bankruptcy if left unaddressed by the government.
He noted that European investors are particularly concerned about the amended Foreign Exchange Act, which requires resorts to convert 40 percent of their gross dollar revenues through local banks. According to Nasheed, business owners told him this mandate leaves resorts without enough foreign currency to pay daily operational costs, settle debt obligations, or distribute dividends.
Additionally, European operators reported that they already pay 20 percent GST in their home nations while settling local TGST through registered Maldivian entities. Imposing extra destination-based GST charges directly on offshore agencies creates an unbearable double-taxation burden that threatens the national economy.
