Thursday
21st Nov 2024
Dhivehi Edition
President Dr.Muizzu
Maldives Enacts 7th Amendment to Goods and Services Tax Act, Revising Tourism Tax Rates
President Muizzu, Photo: President's Office.
President Dr. Mohamed Muizzu has ratified the 7th Amendment to Act No. 10/2011, known as the Goods and Services Tax Act, introducing key changes to the Tourism Goods and Services Tax (TGST). Passed by the 20th Parliament on October 31, 2024, the amendment establishes a timeline for the current and future TGST rates and extends tax exemptions for employee-only facilities within the tourism industry.
Under the new amendment, the TGST rate on tourism-related services will remain at 16% until June 30, 2025. As outlined in Section 15(b)(6) of the Act, this rate will then increase to 17%, effective from July 1, 2025.
In addition to tax rate adjustments, the amendment expands exemptions within the tourism sector. Previously, shops exclusively serving tourism employees were exempt from being classified as tourist goods or services. Now, the exemption has been broadened to include employee-only cafés, making the law more inclusive of service areas specifically catering to tourism industry staff.
Following the ratification, relevant regulatory changes must be made and published in the Government Gazette within 30 days. The 7th Amendment has now been officially published and is in effect.