President defends tax hikes; cites obstacles by previous govts

President Mohamed Muizzu on Saturday addressed concerns raised by business leaders over the government’s recent economic decisions, including higher airport fees, an increase in the Tourism Goods and Services Tax (TGST), and adjustments to the green tax on tourism.

Speaking at the inauguration of a new pet facility, President Muizzu stated that these measures were taken in the interest of the public and highlighted obstacles imposed by influential figures in past administrations.

In response to criticism from some members of the business community regarding these fiscal changes and the mandatory exchange of foreign currency for tourism businesses, President Muizzu emphasised that his government is taking action on matters that previous governments could not address due to resistance from powerful individuals.

"For many days, there have been major issues that were left unaddressed, locked under the influence of powerful people," President Muizzu said. "This government will not hesitate. We will act for the people, guided by their concerns and aspirations."

The government recently implemented and secured parliamentary approval for several fiscal adjustments:

President Muizzu reiterated that these decisions were made to prioritise the needs and welfare of the Maldivian people, despite the concerns expressed by the business sector.