The Maldives Monetary Authority (MMA) has advised all tourism sector businesses to prepare their systems and pricing displays for the Tourism Sector Goods and Services Tax (TGST) increase to 17 per cent, which takes effect from July 1, 2025.

This one-percentage-point increase from the current 16 per cent follows the seventh Amendment to the Goods and Services Tax (GST) Act and will take effect at midnight on July 1, with varying implementation schedules for different businesses.

For tourist establishments operating on a 24-hour basis, the transition will occur precisely at midnight, with the 16 per cent rate applying to transactions before midnight and the new 17 per cent rate taking effect immediately afterwards. Other tourism businesses will implement the new rate when they open for business on July 1.

The timing of the tax application will be determined by the "time of supply" of each transaction, meaning that any services provided on or after July 1 must be charged at the new 17 per cent rate, regardless of when they were booked.

Tourism businesses seeking additional information about the tax increase can contact the authority's dedicated helpline on 1415 or send enquiries to [email protected]