Tourism Minister signals imminent TGST changes

Tourism Minister Mohamed Ameen said on Saturday evening that President Dr Mohamed Muizzu has decided to introduce urgent changes to the Tourism Goods and Services Tax (TGST) Act to address concerns raised by the industry.

Several associations representing European tour operators and travel agents have recently asked the government and MIRA to postpone the implementation of the Eighth Amendment to the GST Act, which extends GST to foreign travel agents from this month. The amendment was approved by the President on August 31 last year.

Speaking at a special session held to mark National Tourism Day, Minister Ameen said the government has already made changes over the past two months to include additional provisions on TGST payments based on the destination-principle model. He noted that tourism stakeholders and travel agents have expressed serious concerns regarding these changes.

According to the Minister, the concerns mainly relate to deadlines and procedural requirements, and many industry players have formally submitted their views to the President. “At the moment, the President has decided to make changes to the TGST Act very soon on the basis of the destination principle. So I am telling you this for your information tonight,” he said.

The Minister also highlighted ongoing efforts to promote Maldivian tourism. Referring to the logo and slogan for Visit Maldives Year 2027, he said the coming years will be a golden opportunity to celebrate the country’s tourism achievements and strengthen its global competitiveness, a development he said will undoubtedly benefit the Maldivian economy.