MATATO welcomes government decision to review destination-principle TGST

The Maldives Association of Travel Agents and Tour Operators (MATATO) on Sunday welcomed the President’s decision to introduce changes to the destination-principle TGST.

Several associations representing European tour operators and travel agents had earlier asked the government and MIRA to postpone the implementation of the Eighth Amendment to the GST Act, which requires foreign travel agents selling Maldives holidays to pay TGST from this month. The amendment was ratified on August 31 last year.

Tourism Minister Mohamed Ameen said on Saturday that the government decided to revise the framework after receiving concerns from tourism industry players and international travel agents.

MATATO said in a statement that the association is grateful to the government for listening to and responding to the industry’s concerns. In recent weeks, MATATO has held discussions with relevant stakeholders in Maldives and abroad, and conducted an industry-wide survey to assess the commercial and operational impact of the changes.

MATATO Secretary General Abdulla Suood said the government’s decision is an important and positive step, noting that the tourism industry has always been strongest when government and industry stakeholders work together in consultation.

“MATATO stands ready to cooperate with the government in developing an equitable framework that protects state revenues, while ensuring Maldives remains a competitive and affordable destination in the international market,” he said.

MATATO added that, as the proposed amendments to the TGST framework continue to be formulated, the association looks forward to further discussions with the government, MIRA, the Maldivian tourism sector and international travel partners.