The government has held high-level discussions with key leaders operating in the tourism industry.

According to the Ministry of Tourism today, this meeting was held as part of ongoing consultative discussions conducted by the government with parties from the tourism industry.

Participating on behalf of the government in this meeting, alongside Tourism Minister Mohamed Ameen, were Attorney General Ahmed Usham, Economic Minister Mohamed Saeed, Finance Minister Hassan Zareer, and Commissioner General of Taxation Fathimath Ameeza. Among the prominent figures participating from the tourism sector were Sun Siyam Company head Ahmed Siyam Mohamed and Crown & Champa Resorts Chairperson Hussain Afeef (Champa Afeef).

Discussions in this meeting primarily focused on increasing the number of tourists visiting the Maldives. In addition, the ministry stated that extensive discussions were held on measures that can be taken to achieve the tourism targets set for 2027 and on finding solutions to the challenges currently facing the sector.

Based on the advice and guidance provided by industry leaders, it was agreed in the meeting to achieve key milestones. The ministry also gave assurances that the government will work closely with industry stakeholders to advance the tourism sector.

While the government has met with leaders active in the tourism industry, President Dr. Mohamed Muizzu has decided to bring changes to the law regarding the collection of T-GST under the destination principle, following amendments brought to the "Goods and Services Tax Act" to collect GST on goods and services provided to the Maldives by foreign businesses operating in the tourism sector.

Speaking last Saturday at the ceremony held to mark National Tourism Day, Tourism Minister Ameen stated that this decision was made in response to numerous requests submitted to the President by leading figures in the tourism industry and travel agents.

Minister Ameen noted that with the changes brought to the law, the government observed significant concerns within the industry. The Minister highlighted that travel agents had concerns regarding the implementation timeframe and due to other reasons.

Consequently, prominent industry figures and a large number of travel agents petitioned the President to find solutions to those concerns.

"At present, the President has decided to bring very swift changes to the T-GST law under the destination principle," the Minister had stated.

The bill, ratified by the President on August 31st, stated that its purpose was to specify in the Goods and Services Tax Act the procedures for collecting GST on goods and services provided by offshore booking platforms, foreign tour operators, and travel agents, in order to implement the destination principle in the Maldives. It was also stated to be for introducing any other necessary amendments to resolve difficulties encountered in implementing the goods and services tax system and to further strengthen that system.

The bill stated that if the bill is passed and tax collection begins in accordance with these amendments, state revenue would increase annually by MVR 1,608.5 billion, comprising MVR 299.3 million paid by foreign travel agents and MVR 1,309.2 billion paid by foreign tour operators.

The bill included collecting GST from offshore booking platforms, foreign tour operators, and overseas travel agents. Furthermore, amendments were included in the bill to resolve difficulties faced in implementing this system and to further strengthen it.

In accordance with this law, the collection of T-GST commenced last Thursday.