Thursday
25th Apr 2024
Dhivehi Edition
Finance Minister Ibrahim Ameer. Photo: TMJ
Minister of Finance Ibrahim Ameer stated that the increase in Tourism Goods and Services Tax (TGST) will not affect tourism negatively.
Ameer’s statement comes after many businesses associated with the tourism industry have expressed their displeasure due to the negative effects on tourism should the TGST be increased from 12 percent to 16 percent as per the bill proposed to parliament by the government.
Upon completion of a survey conducted by Maldives Association of Travel and Tour Operators (MATATO) in collaboration with over 300 international tour operators and travel agents, MATATO stated that increasing TGST will cause the country to lose at least 10 percent of its tourists next year.
Speaking at a news conference held at the President’s Office on Thursday, Minister Ameer said that the current GST and TGST rates taken by Maldives is considerably lower than that of other small countries solely dependent on income through tourism. Moreover, Ameer urged that the Maldives’ decision to increase GST and TGST rates is fully supported by renowned financial institutes of the world such as the World Bank and IMF.
Ameer said that the government does not believe that TGST rate change will affect the influx of tourism. Ameer stated that the services of tourism have seen increases in prices lately and therefore, increasing TGST is not expected to negatively impact Maldivian tourism.