The Maldives Association of Travel Agents and Tour Operators (MATATO) has publicly expressed its full support for the government’s ongoing efforts to stabilize and improve the nation’s financial situation. In a recent statement, MATATO emphasized the urgent need for fiscal reforms and affirmed its alignment with the government’s strategy to strengthen the country’s financial framework.
MATATO addressed recent misunderstandings regarding its stance on the proposed amendments to the Goods and Services Tax (GST) Act. Contrary to some reports, the association clarified that it does not oppose the collection of taxes in US dollars (USD). MATATO underlined the importance of aligning tax collection with the practical realities of the tourism sector, where much of the revenue is generated in foreign currency. The organization believes that allowing companies earning income in USD to pay taxes in the same currency is a vital change that will bolster the economy.
The association also highlighted the necessity of broad fiscal reforms, noting that effective revenue collection and the elimination of inefficiencies within the system are crucial. MATATO expressed its full support for the government’s broader fiscal objectives, which include reducing recurrent expenditure and implementing cost-saving measures. According to the Ministry of Economic Development, these efforts have already resulted in savings of MVR 16 billion over the last six months.
MATATO further emphasized its commitment to working collaboratively with the government to ensure that the amendments to the GST Act are beneficial to the Maldives’ economy while protecting the interests of the tourism sector. The organization pledged to continue its dialogue with stakeholders to achieve common goals.
Additionally, MATATO voiced strong support for President Dr. Mohamed Muizzu’s vision for economic reform. The association praised the President’s strategic approach to addressing the current economic challenges and reiterated its commitment to contributing to the government’s fiscal reform agenda, which includes expanding the tax base and revising subsidies to ensure financial stability.
