The Parliament has sent a bill seeking to impose GST on goods and services supplied to the Maldives by foreign businesses operating in the tourism sector to the Whole House Committee for further review.

The bill was submitted by Kulhudhuffushi North MP Mohamed Dawood. It was accepted for consideration with 72 of the 73 MPs present voting in favour, while opposition MDP MP for Kaashidhoo Mohamed Niushaad voted against it.

The bill proposes amendments to the Goods and Services Tax Act to apply GST to services provided by offshore booking platforms, foreign tour operators and overseas travel agents, in line with the destination principle.

It also proposes changes to address challenges in implementing the GST system and strengthen its administration.

The bill estimates that the proposed changes could increase annual state revenue by MVR 1.61 billion, including MVR 299.3 million from foreign travel agents and MVR 1.31 billion from foreign tour operators.

If passed, the proposed GST changes are scheduled to take effect from October.