Tourism Minister Mohamed Ameen stated tonight that decisions have been made to bring further amendments to the changes brought to the law regarding the collection of TGST from booking platforms, tour operators, and travel agents that arrange bookings to the Maldives for tourists.
Speaking at a special ceremony held to mark Tourism Day, Ameen stated that with the ratification of the tax law last month to collect TGST from tour operators and travel agents, major complaints had been received from the tourism sector and foreign tour operators.
Currently, the President has decided to bring changes to the TGST law very soon under the principle of destination principle, he stated.
Ameen stated that to make the Maldives a fully developed country by the year 2040, important steps are also being taken to further diversify the tourism sector.
According to the law, such changes were brought to add principles under which GST will be collected from services provided by off-shore booking platforms and foreign tour operators and travel agents. The law states that these are changes brought to resolve difficulties in the tax collection system and strengthen the system.
If tax collection begins with these changes, it has been estimated that an additional MVR 1.6 billion will be added annually to the state, comprising MVR 299.3 million paid by foreign travel agents and MVR 1.3 billion paid by foreign tour operators.
Due to the changes brought to the law, some European tour operators have even suspended making bookings to the Maldives.
Speaking at tonight's ceremony, Ameen stated that as the tourism sector completed 54 years, Maldivian tourism is one of the most globally popular destinations, and that reaching this point was due to the immense work of those who worked in the sector.
Minister Ameen stated that the Middle East conflict had a major impact on Maldivian tourism, but that they are once again facing those challenges and tourist arrival rates are increasing significantly. He also stated that the sector is now reaching its previous status.
By September of this year, 1.5 million tourists have arrived in the Maldives. This is a 3.4 percent decrease compared to last year.
