Clients travelling to the Maldives will see price rises this year after the country’s government introduced a 3.5% tax on tourism.
Maldives acting finance minster Muhmood Razee has introduced the tax in a bid to lessen his government’s reliance on indirect taxes. Formerly, hotel owners did not pay income or profit tax.
The tax reform will be rolled out to all industry sectors in the Maldives.
Whilst some tourism industry figures have spoken out about the tax making the Indian Ocean atoll seem less competitive, Razee told press agency AFP that the move was necessary to ease pressure from the poorest in the Maldives, who are especially affected by import duties.
by DInah Hatch
