Italian tour operator stops bookings to Maldives to protest new TGST regulation

The company said this decision will remain until the Maldivian government establishes an environment where they respect fairness and international laws.

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A tourist visiting the Maldives stands beside the Visit Maldives logo at Velana International Airport -- Photo: Fayaz Moosa

Umar Shan Shafeeq

2026-10-02 18:22:36

As the Maldives Inland Revenue Authority (MIRA) has begun enforcing the government's recent amendment to the Income Tax Act where Tourism Goods and Services Tax (TGST) will be charged for tour operators and online booking platforms, popular Italian tour operator "Kiaora Viaggi" has suspended all bookings and flight sales to Maldives in protest to the amendment.

According to the company's website, they have decided to suspend the sale and new bookings to Maldives.

The company said this decision will remain until the Maldivian government establishes an environment where they respect fairness and international laws.

The company views the implementation of 17 percent in TGST within a margin of a consultancy operating in Italy and as an intermediary, and announcing the registration to MIRA is in violation of international legal standards. They said they regularly pay the GST and Green Tax for Maldivian resorts, travel and services directly from Maldives.

They said that tourists who have already made their bookings have nothing to worry about and that they are working to carry out the bookings at the agreed upon price.

Kiaora Viaggi said this decision is part of a wider protest within the European Union's trade unions.

They went on to say that the European Travel Agents' and Tour Operators' Associations (ECTAA) sent a letter to the Maldivian embassy in Brussels, expressing their concern, with the United Kingdom's ABTA (The Travel Association) having written a letter to the Maldivian Tourism Ministry requesting the enforcement of this amendment be delayed.

MIRA began enforcing TGST costs onto foreign tour operators and online booking platforms from 1st October 2026.