“Maldives takes a smaller tax from tourism industry than other small nations such as Fiji, Mauritius, and Seychelles, who are heavily dependent on tourism. Unlike other countries rich tourists visit the Maldives. For them increase in prices will not be a deterrent. These taxes can be increased to tourists,” IMF Resident Representative to Sri Lanka and Maldives Koshy Mathai explained. During a press conference held on Monday in Maldives Monetary Authority (MMA) Mathai said an increase in tourism tax would not reduce the number of tourists visiting the Maldives. Answering a question from Haveeru Mathai revealed that IMF has already suggested the Finance committee of Parliament, Finance Minister and Governor to increase the tourism tax by 15 percent. Mathai forecasted the budget deficit to increase by 16 percent this year and hence highlighted the difficulties facing the government to plug the deficit. “Budget deficit have increased more than 80 percent of DGP. Imports have increased and due to shortage of dollar MMA’s reserve is under pressure,” Mathai detailed. Mathai urged to include “real numbers” in next year’s state budget. He advised the government to explore ways to decrease the deficit and increase revenue.