An amendment has been submitted to exempt foreign tour operators from paying goods and services tax (GST) in Maldives.

Kolamaafushi MP Ibrahim Didi submitted the amendment today, seeking to remove provisions taxing foreign tour operators from legislation that came into force on 1 October.

President Dr Mohamed Muizzu ratified the amendment to the Goods and Services Tax Act on 31 August, introducing GST on services provided by offshore booking platforms, foreign tour operators and travel agents.

The original amendment was intended to close loopholes in the tax system and strengthen revenue collection.

At the time, the government estimated that the changes would generate an additional MVR 1.6 billion annually, including MVR 299.3 million from foreign travel agents and MVR 1.3 billion from foreign tour operators.

However, the government has since decided to revise the legislation following concerns raised by Maldivian and foreign experts.

Speaking at a ceremony marking World Tourism Day on 1 October, Tourism Minister Mohamed Ameen said GST had been imposed on tour operators and travel agents, but changes would be made to the law.

“The President has decided to make changes to the TGST Act very soon on the basis of the destination principle,” Ameen said.