Majlis begins debate on bill to repeal tax on foreign tour operators

The People's Majlis on Monday began debate on a bill to repeal the tax that has been collected since the beginning of this month from foreign tour operators and offshore booking platforms that provide inbound tourism services without a permanent presence in the Maldives. The bill, introduced by Kolamaafushi constituency MP Ibrahim Didi on behalf of the government, proposes amendments to the law on taxation of goods and services. It seeks to remove the tax imposed on inbound tourism products and services supplied by entities with no permanent place of business in the Maldives, and to strengthen enforcement against parties failing to pay GST. Under the bill, the Commissioner General would have the authority to determine whether a transaction was primarily carried out to obtain a tax benefit. The bill sets out conditions that could be treated as tax avoidance arrangements, including reducing the amount of GST payable and delaying the date on which GST must be paid. According to the bill, it would come into effect once passed, ratified and gazetted. It also notes that the state would no longer receive the MVR 1,608.5 million in revenue that had previously been projected from GST on offshore booking platforms and foreign tour operators.