The Ministry of Finance has clarified that the implementation of the ‘destination principle’ in the Maldives will not include general businesses importing goods. Instead, this measure is specifically aimed at recovering GST that is currently lost through offshore booking platforms and foreign tour operators within the tourism sector. The Deputy Minister of Finance stated that this is not a new tax, but rather a long-studied reform initiated following IMF recommendations, ensuring that it will not impose any additional tax burden on Maldivian citizens. Furthermore, upon the passage of this bill by the People’s Majlis, the Maldives Inland Revenue Authority (MIRA) is preparing to fully implement the principle by making necessary systemic adjustments and formulating the required regulations and guidelines.
