The Maldives appears to be postponing a controversial 17% tax on foreign travel companies until April 1, 2027, according to local media reports. The Tourism Goods and Services Tax (TGST) was set to apply to overseas travel agencies, tour operators and offshore booking platforms from October 1.
The reported delay follows intense lobbying from European travel associations, including ABTA, France's SETO and Germany's DRV, who appealed to President Mohamed Muizzu. They argued the tax was introduced without adequate consultation and could raise vacation costs during the critical winter season.
Tourism Minister Mohamed Ameen announced the delay at a national tourism event, but the government has not yet officially confirmed the postponement. This leaves overseas travel businesses uncertain, as the legislation formally came into force on October 1.
The Maldives welcomed a record 2.25 million visitors in 2025 and is preparing for Visit Maldives Year 2027. For travellers, the reported delay may help keep package prices stable during the winter season, though official confirmation is still needed.
