MATATO: Collection of tax in USD imperative; will boost economy

The collection of tax in US dollars for income earned in the currency is imperative, says Maldives Association of Travel Agents and Tour Operators (MATATO), adding that it is a change that will boost the Maldivian economy.

In a statement on Tuesday, MATATO clarified that it is not opposed to the collection of tax in US dollars.

“MATATO is not opposed to the collection of tax in US dollars (USD). Our focus is on ensuring that the implementation of these reforms aligns with the practical realities of the tourism sector,” it said.

MATATO said it recognizes the importance of effective fiscal policies and the need for reforms that enhance revenue collection and address inefficiencies within the system.

“We believe the time is critical for this long-needed reform and we fully support the government's broader fiscal objectives,” it said.

“Collection of tax in USD for USD income earned is imperative and a change that will boost the economy.”

MATATO said it remains committed to working collaboratively with the government to ensure that any changes to the GST Act are implemented in a way that benefits the Maldives' economy, while safeguarding the interests of the tourism sector.

“We look forward to continued dialogue and cooperation with all stakeholders to achieve these common goals,” it said.

MATATO hailed President Dr. Mohamed Muizzu's “forward-thinking vision and strategic approach” to turning around the current economic situation in the Maldives.

“We support the government's efforts to implement a comprehensive fiscal reform agenda aimed at reducing recurrent expenditure and introducing measures to save costs, ensuring the financial stability and sustainability of the Maldives economy. And we pledge our commitment to progress towards His Excellency's goals for the betterment of the tourism industry and the whole nation,” it said.

Earlier this week, the cabinet approved measures aimed at boosting dollar revenue streams in order to alleviate the current dollar crunch, including collecting corporate income tax from companies that earn US dollars in US dollars, instead of Maldivian Rufiyaa.