EFFECTIVE from January 1, the Maldives has introduced a 3,5% tax on all tourism-related services.
The new tax is set to be imposed on a wide range of services, from room rates at resorts, guest houses and live-aboards, to tourist vessel hire and the cost of food and drink, diving schools and domestic transportation.
According to acting Finance Minister, Mahmood Razee, the implementation of the new tax represents a government strategy aiming to roll out more direct national funding from Maldivian industries, where operators like resort owners have not previously been required to pay tax on profits or income.
Meanwhile Mohamed Maleeh Jamal, Secretary General for the Maldives Association of Travel Agents and Tour operators, has said that, as an organisation, they are not against a service tax within the travel market, however they do have some concerns as to how the funds will be implemented and who will carry the cost.
Tourism accounts for nearly two-thirds of the Maldives' economy of over a billion dollars, with the rest coming from fish exports. Razee said the additional income would be vital to attempts to reduce the country's budget deficit this year.
