Maldives expects extra MVR 2.8b in revenue from tourism tax hikes
According to the state tax authority, the government collected MVR 19.6 billion in revenue during the first seven months of this year.
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Maldives government expects to collect an additional MVR 2.8 billion in revenue following the approval of bills aimed at increasing tourism-related taxes, including the Tourism Goods and Services Tax (TGST).
Parliament is set to resume Monday, where these changes will be discussed.
The proposed changes to the TGST and green tax rates include:
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TGST: Increase from 16% to 17%.
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Green tax for guesthouses: Increase from $3 to $6.
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Green tax for resorts and city hotels: Increase from $6 to $12.
Additionally, the government has proposed increases in airport departure taxes as follows:
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Departure fee for foreigners in economy class: Increase from $30 to $50.
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No change in the fee for Maldivian economy class passengers.
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Departure fee for business class passengers: Increase from $60 to $120.
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Departure fee for first class passengers: Increase from $90 to $240.
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Departure fee for passengers on private jets: Increase from $120 to $480.
The finance ministry projects that the new tax measures will generate additional revenue equivalent to 3% of the country’s GDP starting next year. The breakdown of the expected revenue includes:
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Airport taxes: MVR 1.6 billion from December 1.
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Green tax: MVR 963.6 million from January.
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TGST: MVR 201.9 million from June 1.
This would amount to a total of MVR 2.8 billion in additional revenue for the government, with the increased taxes contributing to revenue generation starting next year.
According to the state tax authority, the government collected MVR 19.6 billion in revenue during the first seven months of this year.
