President Dr. Mohamed Muizzu has stated that the introduction of the ‘Destination Principle’ through the 8th amendment to the Goods and Services Tax Act will significantly benefit the national economy and bolster state revenue. The President highlighted that this amendment focuses on broadening the tax base rather than increasing tax rates. Under this new principle, a 17% GST will be applied to tourism services consumed in the Maldives that are booked via offshore platforms and international tour operators. The primary objective of this measure is to ensure uniform taxation on all goods and services consumed within the Maldives, thereby creating a level playing field for local travel agents and tour operators to compete fairly with foreign businesses.
