The Maldives government is expected to remove a controversial tourism Goods and Services Tax (GST) after opposition from the UK travel trade. The 17% tax, introduced on October 1, had raised concerns that it would hurt the peak winter travel season for the Indian Ocean nation.
Industry bodies initially reported that the tax's implementation on foreign travel agencies, tour operators and offshore booking platforms would be delayed until April 1, 2027. However, ABTA has confirmed that an amendment bill would now eliminate the GST charge on inbound tourism products supplied by foreign operators without a physical establishment in the Maldives.
The bill also mandates refunds for any GST collected under this rule since October 1. A new general anti-avoidance rule targeting artificial tax arrangements would be introduced. ABTA public affairs director Luke Petherbridge welcomed the legislation, noting that ABTA worked with international partners to raise concerns and seek a solution.
For travellers, this means that the tax-related cost increases on Maldives holidays booked through foreign operators are likely to be reversed, with refunds available for tax already paid since October 1.
