Maldives imposes remittance tax as tourism outlook declines

maldives_workers

MALDIVIAN authorities have slapped a tax on remittances by expatriates in an effort to garner extra revenue for the cash-strapped nation dependent on tourism revenue.

The Maldives Inland Revenue Authority (MIRA) said the 3 per cent Remittance Tax to be charged from expatriates will be in effect starting October and be enforced on nearly 100,000 foreigners working mostly in resorts.

Another 50,000 to 75,000 undocumented, low-wage workers mostly from Bangladesh will be the most affected by the move.

“They get very little (around US$100 to US$200 a month) and deducting 3 per cent off this could be a bit harsh,” said a travel agent who declined to be named.

Of the estimated 367,000 total population in the Maldives, about 150,000 are foreign workers mostly attached to resorts.

According to new laws, salaries of all expatriate workers in the Maldives must be deposited in accounts of banks operated in the Maldives.

Political unrest, an economic slowdown and a drop in tourist arrivals, the country’s main source of income, has seen the country’s revenue decline.

Sponsored Post