The 17% Tourism Goods and Services Tax (TGST) on foreign tour operators, travel agents and offshore booking platforms will take effect on 1 April 2027, after Tourism and Civil Aviation Minister Mohamed Ameen announced a delay on 3 October in Malé.
The tax had been due to start on 1 October 2026. It did not start on that date, despite some reports saying it had.
The measure comes from the eighth amendment to the Goods and Services Tax Act, ratified by President Dr Mohamed Muizzu on 31 August. It applies the existing 17% TGST to tourism services such as accommodation, meals and transport sold by overseas businesses that have no permanent presence in the Maldives.
For intermediaries, industry guidance says the tax applies to their margin, not to the full price of a holiday package.
Tourism businesses had raised concerns about pricing, existing contracts, compliance costs and the country's competitiveness. Minister Ameen has said the government plans further amendments after complaints from the industry, but no details have been released.