The amendment to the TGST bill, submitted by People's National Congress (PNC) MP Mohamed Musthafa on behalf of the government, stipulates that the TGST will be set at 16 percent until May next year, increasing to 17 percent starting June.
Parliament committee today approved two bills proposed by the government aimed at increasing tourism-related taxes, including the Tourism Goods and Services Tax (TGST), green tax, and airport tax.
The amendment to the TGST bill, submitted by People's National Congress (PNC) MP Mohamed Musthafa on behalf of the government, stipulates that the TGST will be set at 16 percent until May next year, increasing to 17 percent starting June.
This adjustment is expected to generate an additional MVR 200 million for the state. The sub-committee reviewing the bill modified the tax rate to 16 percent until June, with the increase to 17 percent starting in July. The bill received unanimous support from 68 members.
The government’s proposal to raise the green tax will see it increase from USD 3 to USD 12 starting next year, effectively doubling the rate for certain places that currently charge USD 6.
The subcommittee has proposed the implementation date for this hike to July next year, changing the original proposal to begin in June. An amendment to exempt guesthouses with fewer than 25 rooms from this tax was proposed by opposition MDP MP Mauroof Zakir but was not passed.
Additionally, the committee approved the government’s bill regarding the airport development fee and departure tax, which will see an increase from USD 30 to USD 50, marking a 65 percent rise. For business class passengers, the fee will increase by 100 percent to USD 120, while first-class travelers will see charges rise to USD 240, a 165 percent increase. Private jets will also face a significant hike, with charges rising by 300 percent to USD 480.
Sign In
