The amendments passed today include changes to the Goods and Services Tax Amendment Act, increasing TGST on tourism, as well as government led adjustments to the green tax, airport development charges, and departure tax.
Parliament has passed three bills to raise tourism related taxes, including the Tourism Goods and Services Tax (TGST), the green tax, and passenger departure taxes from Maldives.
The amendments passed today include changes to the Goods and Services Tax Amendment Act, increasing TGST on tourism, as well as government led adjustments to the green tax, airport development charges, and departure tax.
All three bills received 71 votes in favor, with eight members voting against.
Under the amendment to the TGST bill, the TGST rate will remain at 16 percent until May next year, then increase to 17 percent in June. This adjustment is expected to generate an additional MVR 200 million in revenue for the state.
The government’s approved increase to the green tax will see it rise from USD 3 to USD 6, and from USD 6 to USD 12, effective from July next year.
The amendment to the Airport Development Charge and Departure Tax also introduces significant hikes. Economy class departure fees will rise from USD 30 to USD 50 which is a 65 percent increase.
Business class passengers will see their fee double to USD 120, while first class travelers will face a 165 percent hike, bringing their charge to USD 240. Private jets will also face a significant hike, with charges rising by 300 percent to USD 480.
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