Finance Minister Moosa Zameer has announced plans to establish a system next year to levy Tourism Goods and Services Tax (TGST) on tourism services provided by offshore travel agents and booking platforms.

Presenting next year's state budget in parliament on Monday, Zameer stated that to broaden the tax base, the legal framework would be updated to enable GST to be applied to all goods and services used within the Maldives, with full implementation of the "destination principle" expected by mid-next year.

This change will allow TGST to be applied to tourism services offered by offshore travel agents and booking platforms.

"One of the benefits of this shift will be the reduction of GST-related disparities between domestic businesses and major online entities abroad, creating a more level playing field for local enterprises," Zameer noted.

To further boost revenue, the government has also decided to raise certain tourism-related taxes and fees, including departure tax, airport development fees, and TGST rates, by the end of this year and into the next.