The Parliament has referred several tax increase bills related to the tourism sector to a sub-committee comprising members of the Finance and Economic Committees for further review.
Among the key proposals is an amendment to the Tourism Goods and Services Tax (TGST) hike bill, introduced by Manadhoo Constituency MP Hosni Mubarak and supported by Kendhoo Constituency MP Mauroof Zakir, which seeks to exempt shops and cafés operated by resorts for their employees from GST.
Additionally, Mahibadhoo Constituency MP Ahmed Thorig proposed extending the implementation of the TGST increase to October 31, 2025. This amendment was supported by Fuvahmulaku Central Constituency MP Ali Fazad, Velidhoo Constituency MP Mohamed Abbas, and South Hithadhoo Constituency MP Ibrahim Nazil.
Kendhoo Constituency MP Mauroof Zakir further proposed exempting guest houses and tourism zones in the northern and southern regions of the country from the TGST hike to 17%. This amendment received backing from Maradhoo Constituency MP Ahmed Didi.
All the amendments were passed to a sub-committee by a unanimous vote of 62 members for further study. Additionally, the Green Tax Increase Bill and the Departure Tax Increase Bill were approved with unanimous support from 61 members of Parliament.
These proposed tax changes are part of the government's ongoing efforts to balance revenue generation from the tourism sector while addressing concerns raised by industry stakeholders.
Among the key proposals is an amendment to the Tourism Goods and Services Tax (TGST) hike bill, introduced by Manadhoo Constituency MP Hosni Mubarak and supported by Kendhoo Constituency MP Mauroof Zakir, which seeks to exempt shops and cafés operated by resorts for their employees from GST.
Additionally, Mahibadhoo Constituency MP Ahmed Thorig proposed extending the implementation of the TGST increase to October 31, 2025. This amendment was supported by Fuvahmulaku Central Constituency MP Ali Fazad, Velidhoo Constituency MP Mohamed Abbas, and South Hithadhoo Constituency MP Ibrahim Nazil.
Kendhoo Constituency MP Mauroof Zakir further proposed exempting guest houses and tourism zones in the northern and southern regions of the country from the TGST hike to 17%. This amendment received backing from Maradhoo Constituency MP Ahmed Didi.
All the amendments were passed to a sub-committee by a unanimous vote of 62 members for further study. Additionally, the Green Tax Increase Bill and the Departure Tax Increase Bill were approved with unanimous support from 61 members of Parliament.
These proposed tax changes are part of the government's ongoing efforts to balance revenue generation from the tourism sector while addressing concerns raised by industry stakeholders.
