Green Tax revenue exceeds estimates despite 'mistake' ban
Due to an error in the Green Tax commencement date during the drafting of a July amendment, Green Tax could not be levied for two months.
By
Ahmed Naaif
Maldives Inland Revenue Authority (MIRA) has revealed that the revenue generated from Green Tax has not decreased in the past two months despite an erroneous suspension of the tax.
MIRA was made aware in August that due to an error in the Green Tax commencement date during the drafting of a July amendment, Green Tax cannot be levied this year.
The government proposed amendments to the Tourism Act to resolve the issue. The amendments allow the state to collect Green Tax if it was collected even after the July amendment.
The latest amendment was passed by the parliament and ratified by the president in late September.
While the deadline for paying Green Tax expired last Thursday, a MIRA official told Atoll Times that:
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$4.9-4.7 million received as Green Tax in the past two months
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Green Tax generated the same revenue during the same period last year.
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Green Tax collection in the past two months exceeded forecasts by 5-12%
Green Tax accounts for 5.5% of the MVR 15.2 billion revenue generated by the state by the end of August, making it the fourth biggest contributor to tax revenue.
Due to the erroneous suspension of the tax, there was a risk of loss of income between MVR 200-300 million.
The state earned MVR 802.1 million from Green Tax last year.
Green Tax is levied on:
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Resorts - USD 6 per tourist per night
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Hotels or guesthouses - USD 3 per night from each tourist
