President Dr. Mohamed Muizzu today ratified the bill passed by the People's Majlis on the 23rd of August to amend tax laws so that TGST is charged from booking platforms, tour operators, and travel agents that make bookings to the Maldives for tourists.

The President ratified the bill at a ceremony held at the President's Office today to ratify that bill along with six other bills recently passed by the Majlis.

Detailing the importance of some of the bills ratified today, the President stated that bringing this amendment to the law will bring great progress to the tourism sector.

"Introducing the destination principle will benefit the Maldives," the President said.

Submitted on behalf of the government by Kulhudhuffushi North MP Mohamed Dawood, the bill was passed by the People's Majlis with 54 members voting in favor out of 56 members who participated in the vote. Two members voted against passing the bill.

The members who voted against passing the bill were Hanimadhoo MP Abdul Ghafoor Moosa and Keyodhoo MP Mohamed Niushad.

According to the bill, its purpose is to add rules to the tax law for charging GST on services provided by offshore booking platforms, foreign tour operators, and travel agents. It is also stated in the bill that these are changes brought to resolve difficulties in the tax collection system and strengthen that system.

The report by the Whole House Committee of the People's Majlis on its study of the bill was passed at today's sitting with amendments submitted by Thulusdhoo MP Ibrahim Naseem to further detail certain concepts.

It is estimated that if the bill is passed and tax collection begins as specified in the bill, state revenue will increase by MVR 1.6 billion annually, including MVR 299.3 million paid by foreign travel agents and MVR 1.3 billion paid by foreign tour operators.