Bill to Repeal Tax on Foreign Tour Operators Submitted to Parliament

A bill to scrap the tax imposed on foreign tour operators has been submitted to the Maldives Parliament, weeks after the collection began and drew sharp criticism from the industry. The bill, presented on behalf of the government by Kolamafushi constituency MP Ibrahim Didi, seeks to remove all provisions in the Goods and Services Tax law that impose taxes on foreign tour operators. The Maldives Inland Revenue Authority (MIRA) began collecting the tax from foreign tour operators on 1 October. Three days later, the government announced that President Dr Mohamed Muizzu had decided to stop the collection. Tourism Minister Mohamed Amin announced the decision while speaking at an official function held to mark Tourism Day. He said the President had received many requests from industry leaders and travel agents, and had decided to bring amendments to the TGST law based on the destination principle. Amin said the government had noted significant concerns within the industry and among travel agents following the passing of the law. Before the tax was introduced, Russia's largest tour operator had sent a letter to the Maldives government expressing concern, and Indian tour operators had also raised objections.