Parliament has passed today the bill submitted on behalf of the government to amend the Income Tax Act where it looks to include Tourism Goods and Services Tax (TGST) for tour operators and travel agents who serve tourists wanting to travel to Maldives.

North Kulhudhuffushi Constituency MP Mohamed Dawood submitted the bill on behalf of the government, with it being passed during today's Parliament sitting where 54 out of 56 MPs voted in favor of it. Two MPs voted against the bill.

The two MPs who voted against it are Hanimaadhoo Constituency MP Abdul Ghafoor Moosa and Keyodhoo Constituency MP Mohamed Niushad.

The purpose of the bill is to add GST regulations to the Income Tax Act for the services provided by offshore booking platforms, foreign tour operators and travel agents. The bill describes these changes as a way to solve the issues within the taxation system and to strengthen it.

The research report from the Committee of the Whole House regarding the bill was passed during today's sitting as per amendments that were submitted by Thulusdhoo Constituency MP Ibrahim Naseem, which requested that some of the definitions include further details.

If the bill is passed and tax imposed, it is estimated that the state will see an yearly increase of MVR 16 billion, which comes from the MVR 299.3 million from foreign travel agents and MVR 13 billion from foreign tour operators.

During today's debate in the Parliament sitting, People's National Congress (PNC) MPs stated that the purpose of the bill is to expand the tax base, and to procure rightful benefits for Maldivians from the financial benefits that come about from foreign parties that make use of Maldivian islands and lagoons.