Enforcement of 17 Percent Tourism Tax Extension on Overseas Platforms Begins

The Maldives Inland Revenue Authority (MIRA) has officially commenced enforcement of the extended 17 percent Tourism Goods and Services Tax (TGST) targeting international online booking platforms and foreign travel agencies. Despite calls from European travel associations for a 6-month deferral, local tax authorities moved forward with the launch date to capture uncollected offshore booking margins. The policy taxes the profit margins made on inbound packages by international tour operators. Global travel trade associations, including the Association of British Travel Agents, formally requested a postponement citing disruption to pre-booked winter itineraries. However, the government maintained its October deadline to secure critical public revenue streams. Local authorities highlighted that foreign platforms operating without local tax registration had previously enjoyed an untaxed advantage over domestic agencies. Under the newly enforced regulations, all foreign operators selling Maldivian tourism products must register with MIRA and remit applicable taxes on their service margins. Fiscal analysts anticipate the measure will bolster state foreign exchange reserves and level the playing field for local tourism businesses. The enforcement marks a significant structural update to the nation's tourism tax collection system