The People’s Majlis has opened a public consultation on a bill proposing to abolish Goods and Services Tax (GST) on inbound tourism products and related services supplied by businesses without a permanent establishment in the Maldives.

The tax was introduced on 1 October following amendments to the Goods and Services Tax Act.

The bill was submitted by Kolamaafushi MP Ibrahim Didi on 26 August and has been referred to the Economic Committee for further review.

The public can submit comments to the Parliament’s Social Committee by noon on 9 November via email or in writing to the Parliament Secretariat.

In addition to removing the tax, the bill proposes strengthening enforcement measures against GST non-compliance and granting the Commissioner General of the Maldives Inland Revenue Authority (MIRA) powers to address tax avoidance arrangements.

The proposed amendments would take effect upon ratification and publication in the Government Gazette.

The bill estimates that the Government could forgo MVR 1.61 billion in projected revenue from GST on off-shore booking platforms and foreign tour operators.