MATATO Endorses Legal Amendment to Mandate Dollar-Based Tax Payments in Maldives

The Maldives Association of Travel Agents and Tour Operators (MATATO) has expressed strong support for proposed amendments to Maldivian law that would mandate businesses earning in dollars to pay their taxes, pension contributions, and customs fees in the same currency. The organization believes this move is crucial to strengthening the nation’s economy and the tourism sector.

In a formal statement, MATATO backed the government's plan, stating that taxing dollar revenues is an essential measure to bolster the country's fiscal strategy. The association highlighted the importance of these changes, particularly given the current economic challenges, including dwindling foreign exchange reserves, a surging parallel market for dollars, and increased spending on essential imports like fuel and food.

MATATO emphasized that the proposed amendments to the Goods and Services Tax (GST) framework are timely and necessary. "At a time when the country's economy is facing challenges, it is important to take such reform measures, and we will get the full support of the organization," the statement read.

The organization also recognized the International Monetary Fund's (IMF) identification of limited access to global markets and high financing costs as major hurdles for the Maldivian economy. MATATO voiced its complete support for President Dr. Mohamed Muizzu's initiatives to enhance the country's financial situation, assuring that it would back his efforts to achieve the set goals for the betterment of both the tourism industry and the nation as a whole.

"We look forward to continuing to engage in dialogue and cooperation with all relevant stakeholders to achieve these critical goals," MATATO stated, expressing optimism that the economic situation could turn for the better in the near future.