Maldives has ratified new amendments to increase multiple tourism taxes.
President Dr. Mohamed Muizzu today ratified the newly passed amendments to three laws increasing Tourism Goods and Services Tax (TGST), Green Tax and Airport Development Fees as well as departure taxes.
The bills were passed by the Parliament last Thursday. The changes to the Airport Development Fees and departure tax will come into effect from 1st December onwards. However, the changes to the Green Tax will take effect from January onwards, while TGST hikes, which will be at 17 percent, will be implemented from July next year.
As per the new changes, although the Airport Development Fee and departure tax on economy class passengers will remain unchanged for Maldivian passengers departing the country, the previous tax of USD 30 will be increased to USD 50. Both locals and foreigners travelling on business class will increase to USD 120, while first class passengers will have to pay USD 240.
Additionally, those travelling via private jets will have to pay USD 480, which is a 300 percent increase from the previous charges.
Starting next year, tourism facilities that used to pay USD 6 would have to pay USD 12, while those which paid USD 3 would have to pay USD 6, marking a 100 percent increase in the taxes.
TGST will go up by 17 percent. As per the new changes, Finance Ministry projects a spike of MVR 2.7 billion in state income.
- Airport Development Fee and Departure Fees: Additional MVR 1.5 billion
- Green Tax: Additional MVR 964 million
- TGST: Additional MVR 202 million
40 percent of the tax increase would come directly from the tourism industry.
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