TGST Increased to 17 Percent from Today

The Maldives Inland Revenue Authority (MIRA) has increased the tourism sector Goods and Services Tax (TGST) to 17 percent, effective from today, 1st July 2025. The rate previously stood at 16 percent.

MIRA announced the change in a circular issued in December 2024, following the seventh amendment to the Goods and Services Tax Act. The revised rate applies to all transactions where the “time of supply” occurs on or after 00:00 hours on 1st July 2025.

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Tourism businesses operating around the clock must apply the new 17 percent rate to all supplies made from midnight onwards. Others are required to charge the updated rate from the time they open for business today.

MIRA has advised all GST-registered tourism operators to update their billing and pricing systems accordingly and to ensure that all displayed prices reflect the revised TGST rate.

For further clarification, MIRA encourages businesses to contact its hotline at 1415 or email 1415@mira.gov.mv.

Tourism sector continues to be Maldives’ primary economic driver. As of June 19, 2025, tax revenues accounted for 77 percent of total government income. Within this, Goods and Services Tax (GST) was the leading contributor, with tourism-related GST alone generating MVR 5.7 billion by mid-year.