MP Falah calls for bigger hike in Green Tax

Inguraidhoo MP and leader of the Progressive National Congress (PNC) parliamentary group, Ibrahim Falah, said on Wednesday that the proposed amendment to the Tourism Act, which aims to double the green tax on tourists next year, is insufficient.

He made this statement during the parliamentary debate on the government's proposed Tourism Act Amendment Bill.

The proposed amendment seeks to double the green tax collected from tourists. The changes include raising the green tax for guesthouses with fewer than 50 rooms from $3 to $6, and for resorts, city hotels, and other tourist accommodations with more than 50 rooms from $6 to $12.

However, Falah argued that the increase should be greater. He emphasised that the Maldives attracts affluent tourists and offers unique natural attractions, such as white sand beaches and clean air.

"I don't believe in the amount the president suggested, but if I were in that position, I would propose a green tax of $18, not $12," he said.

Falah added that such a rate would not be excessive, given the profile of tourists visiting the Maldives. He contrasted the Maldives' appeal with other destinations, stating that tourists would not be deterred by similar attractions in Sri Lanka, such as beaches and weather.

During the discussion, Falah also addressed the government's incentives for resort owners and raised concerns about transparency in reporting tourist numbers. He alleged that some resort owners may not be fully disclosing the number of tourists staying at their properties.

"If the true number of tourists occupying rooms and beds were shown, these measures would not be necessary," he said.

He suggested that discrepancies could result in lower tax contributions to the Maldives Inland Revenue Authority (MIRA), claiming, "If $50 is owed to the state, only $25 might be recorded."