Barely a month old, the Maldives’ 17% tax on foreign sellers faces repeal.
Maldives lawmakers are advancing a government bill to repeal the 17% Tourism GST imposed on overseas tour operators, travel agents and booking platforms from 1 October 2026, and to refund tax already collected, after a fierce global industry backlash.
- 17%Tourism GST on overseas tour sellers
- 43–0Vote accepting the repeal bill
- MVR1.61bnProjected revenue the bill gives up
- 200,000UK visitors in a typical year
A Tax That Lasted Weeks Before the Travel Trade Fought Back
It took the travel trade barely a month to win this fight. On 1 October 2026, the Maldives began applying its 17% Tourism Goods and Services Tax to holidays sold by overseas tour operators, travel agents and booking platforms with no permanent base in the country. Now a government bill to scrap the rule is moving through parliament.
The backlash was loud and international. Some operators wrote directly to President Mohamed Muizzu, and European tour group DERTOUR warned in a letter that the tax would undermine the country’s goals of staying competitive, attracting investment and sustaining demand, TTG Asia reported. Some even warned they could stop marketing the destination.
At World Travel Market London, Tourism and Civil Aviation Minister Mohamed Ameen told ABTA the government would take overseas agents and operators out of the tax, framing the U-turn as listening to industry and protecting competitiveness.
Parliament Backs the Repeal Bill Without a Single Vote Against It
The repeal bill, numbered 20/2026/B-31 and submitted for the government by Kolamaafushi MP Ibrahim Didi, cleared its preliminary debate on 26 October by 43 votes to none, with both the ruling People’s National Congress and opposition MDP in favour.
On 2 November, all 47 MPs who voted sent it to the Economic Affairs Committee. Once passed, ratified and gazetted, it will refund tax collected since 1 October and require updated GST regulations within 90 days.
What Went Wrong With a Tax That Caught Every Single Booking
The tax caught every seller, with no registration threshold, according to the World Travel Agents Associations Alliance. An advisor making one Maldives booking was treated like a global platform, and one sale could force several businesses in the chain to register with the tax authority, MIRA.
On 18 September, ABTA, ASTA, ATIA, ECTAA and WTAAA sent a joint letter to Minister Ameen asking, at minimum, for a postponement and protection for existing bookings.
The Maldives Gives Up 1.6 Billion Rufiyaa to Keep Its Partners
The Maldives gives up real money here: the bill’s fiscal note puts lost revenue at MVR1,608.5 million, including MVR1,309.2 million from foreign tour operators and MVR299.3 million from overseas agents. Tourism GST receipts were already 1.8% lower year on year, at MVR8.12 billion, by mid-October.
For British holidaymakers the stakes are clear, with ABTA counting around 200,000 UK visitors in a typical year.
Frequently Asked Questions
What tax is the Maldives scrapping?
A 17% Tourism GST on holidays sold by overseas tour operators, travel agents and booking platforms.
When did the tax start?
It took effect on 1 October 2026 after President Mohamed Muizzu ratified it on 31 August.
Will tax already paid be refunded?
Yes, the bill requires GST collected since 1 October to be returned once the change takes effect.
Has the repeal become law yet?
Not yet; it is with the Economic Affairs Committee and still needs a final vote, ratification and gazetting.
How much revenue will the Maldives give up?
The bill’s fiscal note puts the lost revenue at MVR1,608.5 million.
Conclusion
For the Maldives, this is a rare and rapid climbdown. A tax ratified on 31 August and switched on in October is already heading for the exit, pushed by tour operators, agent associations and a parliament that has yet to cast a single vote against repeal. The bill still has to clear committee, a final vote, ratification and the Government Gazette, so overseas sellers should keep records of any payments made since 1 October until refunds are confirmed. The lesson from the Indian Ocean is unmistakable: when the businesses that fill the resorts push back together, even a government counting on more than 1.6 billion rufiyaa listens.
Bibliography / Sources
- Samath, F. (2026, November 5). Maldives moves to repeal 17 per cent tax on foreign tour operators [News article]. TTG Asia. https://www.ttgasia.com/2026/11/05/maldives-moves-to-repeal-17-per-cent-tax-on-foreign-tour-operators/
- Murray, R. (2026, November 5). Abta welcomes positive talks with Maldives tourism minister over tax concerns [News article]. Travel Weekly. https://travelweekly.co.uk/news/maldives-to-scrap-tourism-tax-on-overseas-travel-agents-and-operators
- Maldives Today. (2026, October 26). Parliament accepts bill to repeal GST on overseas tour operators with no votes against [News article]. https://maldivestoday.com/tourism/overseas-tour-operator-gst-repeal-bill-accepted
- One Online. (2026, November 2). Bill to scrap GST on inbound tourism services sent to Committee [News article]. https://www.oneonline.mv/en/127936
- World Travel Agents Associations Alliance. (2026, October 27). WTAAA welcomes Maldives bill to scrap GST on overseas suppliers of Maldives travel [Press release]. WTAAA. https://wtaaa.org/pressrelease/wtaaa-welcomes-maldives-bill-to-scrap-gst-on-overseas-suppliers-of-maldives-travel/