ABTA has confirmed the Maldivian Government has tabled legislation to revoke the new 17% tourism tax, which comes after weeks of lobbying from the UK travel trade.
The new Goods and Services tax (GST) brought overseas agents and operators into the country’s tax net for the first time, from 1 October 2026.
Foreign agents and operators were required to register with the Maldives Inland Revenue Authority (MIRA) and pay tax on the margins made from the sale of tourism products, ranging from accommodation to excursions.
However, ABTA said the Government has published an Amendment Bill to the Goods and Services Act, to scrap GST for foreign agents and operators.
The Bill is not yet available in English, but ABTA said it would remove the GST charge on inbound tourism products supplied by overseas agents and operators with no fixed establishment in the Maldives once adopted.
It would also mandate refunds for any GST collected from overseas operators and agents and introduce a new general anti-avoidance rule targeting artificial tax arrangements.
ABTA Director of Public Affairs Luke Petherbridge said: “We welcome the legislation brought forward in the Maldivian parliament on 19 October, which, once adopted, will remove suppliers without a physical premises (place of establishment) from the scope of the Maldives Goods and Services Act.
“Since the original announcement, ABTA has worked closely with partners across the world, including colleagues within the WTAAA and ECTAA, to raise our concerns and seek a solution. We will continue to follow up with the Maldivian authorities and will push for updated guidance so that any remaining obligations, such as working with local partners to ensure compliance with anti-avoidance mechanisms, can be properly understood.”
