MVR 20 million in taxes from Maafushi

The Finance Ministry has revealed that Kaafu Atoll Maafushi, which houses the largest number of guest houses in the Maldives, paid more than MVR 20 million as Tourism Goods and Services Tax (T-GST), GST (Goods and Services Tax) and Green Tax to the state last year.

A written reply sent by Finance Minister Ibrahim Ameer to a question from MP Ibrahim Rasheed of Central Maafannu constituency to clarify the unpaid figures of green tax and T-GST, included statistical data provided by Maldives Inland Revenue Authority (MIRA), which stated Maafushi also received the highest tax revenue from individual islands.

In 2021, Maafushi paid MVR16.4 million in T-GST alone. The island also paid MVR 544,857 in Green Tax and MVR 3.5 million in G-GST.

In the last three years, the state had earned highest revenue in tourism related taxes among individual islands from Maafushi.

Back in 2019, Maafushi raked in MVR 19.8 million in T-GST and MVR 621,480 in Green Tax. In 2020, which coincided with the Covid-19 pandemic, the island paid MVR 5 million in T-GST and MVR 189,402 in Green Tax.

Maafushi is one of the leading islands practicing local tourism in the Maldives with over 40 guest houses in operation. According to Maafushi island council, the island has an annual turnover of USD 73 million (MVR 1 billion).

Last year, the state earned the second highest T-GST revenue from Alifu Dhaalu Atoll Dhigurah amounting to MVR 3.8 million.

Without including Maafushi, the island with the highest Green Tax amount is Alifu Alifu Ukulhas. Last year, the island paid MVR 113,277 in green tax to the state.

T-GST was introduced in the Maldives in 2011. Tourism-related entities are required to pay 12 percent in T-GST to the government.

Tourists staying in resorts, hotels and liveaboards are charged USD 6 in Green Tax per day. Green Tax was introduced in 2015.

The state tax authority, MIRA, collected a total of MVR 1.4 billion in September 2022. From total GST collected, 45.6 percent comprised of T-GST and Green Tax amounted to 5.5 percent of revenue.