- The Travel Network Group has urged the Maldivian Government to implement a transition period for the 17pc tourism tax.
- Chief Executive Gary Lewis raised concerns over the lack of direct consultation with the international travel trade.
- The tax has taken effect on 1 October 2026 under the Eighth Amendment to the GST Act.
- The levy has applied to gross profit, margin or commission retained by foreign operators.
- The group has warned that passed-on costs may make the destination uncompetitive for winter sun seekers.
The Travel Network Group has urged the Maldivian Government to implement a transition period following the decision to extend the country’s 17pc Tourism Goods and Services Tax to overseas travel agents, tour operators and online booking platforms. The group has argued that an abrupt introduction could disrupt bookings and affect visitor numbers. Chief Executive Gary Lewis has raised concerns regarding the lack of direct consultation with the international travel trade.
The trade consortium has identified compliance hurdles and commercial viability as two primary areas of disruption. Registering and complying with an overseas tax authority such as the Maldives Inland Revenue Authority requires legal resources and time that smaller agencies do not have. Adding a 17pc tax on margins and commissions threatens fixed-price packages and brochures already signed and sold for the winter 2026-27 season.
Ratified by President Mohamed Muizzu under the Eighth Amendment to the GST Act, the new rule has adopted a destination principle and has taken effect on 1 October 2026. It has mandated that unregistered offshore entities, including major platforms, register with MIRA. The 17pc tax has been levied on the gross profit, margin or commission retained by the foreign operator rather than the total cost of the holiday package. The Travel Network Group has warned that if costs are passed to travellers, the destination may become uncompetitive and winter sun seekers may look elsewhere.
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