The main opposition party, the Maldives Democratic Party (MDP), says foreign tour operators supplying tourism services to the Maldives face disproportionate regulatory burdens under the new legislation mandating registration with the Maldives Inland Revenue Authority (MIRA).
This requirement imposes obligations that extend beyond accepted international tax norms and threatens the viability of cross-border tourism supply.
In a statement, MDP said that foreign operators have no permanent establishment in the Maldives: they maintain no offices, staff, or assets locally and that their sales occur abroad in international markets.
It said that MIRA’s regulations effectively force foreign operators to act as tax agents, requiring them to file monthly returns and appoint local representatives.
This obligation exceeds the scope of the parent GST Act and imposes disproportionate compliance burdens on entities with no local presence.
MDP singles out ideological motivations behind the regulation
In its statement, MDP highlighted that the current Maldivian government has consistently aligned itself with Salafist groups that view mainstream tourism as haram, adding that in recent years, officials have spoken openly about developing “halal tourism” and have introduced policies that reflect this agenda.
It said that this mandatory registration requirement can therefore be interpreted by international actors not only as a mechanism to raise foreign currency but also as a deliberate attempt to disrupt the existing tourism industry and reshape it along ideological lines.
MDP said that mandatory registration with MIRA represents an overreach that undermines the principles of cross-border trade in tourism services.
It called on the foreign operators to resist through a combination of legal challenges, diplomatic lobbying, and financial advocacy.
MDP noted that coordinated action will ensure that Maldives’ tourism market remains accessible without disproportionate burdens on international suppliers, while also exposing the ideological motivations behind the regulation.
It added that by framing the issue as both an economic and political threat, operators can strengthen their case in European capitals and build momentum for international pressure against the Maldivian government’s disruptive policies.
