After the Maldives state faced legal roadblocks in collecting Green Tax following a slip-up in the date of effect for the tax, put for next year in the previous amendment, its revision has been submitted to the parliament.
The previous amendment to the Maldives Tax Act stated the date of effect for the tax on January 1, 2023. This hampered state from legally collecting the tax for over six months that remained in the current fiscal year.
Despite the legal blockades, several tourist properties continued to levy the tax. Most of the properties collected the tax since they were not privy to the legal ramifications.
First reading of the revised amendment was held during Wednesday's session, August 31.
Maldives Inland Revenue Authority (MIRA), the mandated body for collecting revenue owed to the state, said revision efforts were likely to fall through at swift pace.
Green Tax was first implemented in 2015, levied on tourist resorts, city hotels and safari liveaboards. The tax is charged on tourist arrivals, the exception being expatriates residing in the Maldives on work and resident visas. Guesthouse properties were included in the tax liable category in October 2016.
State has collected a reported total of MVR 617 million in Green Tax in annual terms for 2022. Maldives government projects an annual total of MVR 824 million in Green Tax by the end of the current fiscal year.
Revenue collected as Green Tax is concentrated on development projects centered on shore protection, water and sewerage and waste management.
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