The Maldives Association of Travel Agents and Tour Operators (MATATO) has announced the association fully supports the fiscal reform measures of the government. In a statement made public by the association, it refuted the claims being made the association refuses to cooperate with the decisions made by the government to resolve the fiscal situation of the state.
In its statement, MATATO said it recognises the importance of effective fiscal policies to reform and strengthen the existing financial system. It noted the importance of reforms that will enhance revenue collection to address inefficiencies within the system and added that the association will provide full cooperation to the government.
It also made clear that the association is willing to provide full cooperation with the government in its decision to amend the Tax Administration Act to collect tax in US dollars for income earned in the currency. MATATO stated that the change will boost the country's economy. MATATO gave full assurance that it will continue to support the efforts of the administration to develop the tourism industry and the economy.
The government announced the decision to amend the Maldives Pension Act and the Tax Administration Act, to facilitate businesses that generate income in dollars by allowing them to make governmental payments in dollars. The government has announced these amendments will be presented to Parliament within the next two to three weeks.
The amendment to the Tax Administration Act will enable companies earning revenue in dollars to pay corporate income tax in the same currency. Similarly, the amendment to the Pension Act will ensure that individuals receiving their salaries in dollars will also have their pension contributions made in dollars. Additionally, changes will be introduced to the regulations governing payments to the Maldives Customs Services, allowing these transactions to be conducted in dollars.