Maldives to hike TGST to 17%, double Green Tax
The amendments to the Tax Act will be introduced in parliament Monday.
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Maldives government is set to propose an amendment on Monday to increase the Tourism Goods and Services Tax (TGST) on tourists to 17% and double the green tax.
The amendments to the Tax Act will be introduced in parliament Monday.
The proposed changes include raising the TGST rate from 16% to 17%, effective from June 1 next year.
Additionally, the green tax is set to increase as follows:
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For guesthouses with less than 50 rooms: from $3 to $6 per night per person
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For resorts, city hotels, and establishments serving tourists with more than 50 rooms: from $6 to $12 per night person
The proposed increase in the green tax is scheduled to take effect from next January.
The government also plans to stop levying the green tax on children under the age of two, who are currently subject to this tax.
The proposal to increase tourism-related taxes aims to boost foreign exchange earnings and strengthen the Maldives' foreign exchange reserves.
The TGST rate was last increased from 8% to 16% from January 2023.
