On Tuesday, President Mohamed Muizzu ratified amendments to several laws, resulting in higher fees for departing airport passengers, an increased Tourism Goods and Services Tax (TGST), and a doubled green tax.
The amendments affect the Tourism Act, the Value Added Tax Act, and the Taxes and Fees on Passengers Departing from a Maldivian Airport Act.
As per these amendments, TGST on tourism services will rise from 16% to 17%, starting in July next year.
Changes to the departure tax and airport development fee will take effect on December 1, with the following adjustments:
- For foreign economy class passengers, the airport departure fee will increase from $30 to $50.
- Business class passengers will see an increase from $60 to $120.
- First class passengers will experience a rise from $90 to $240.
- Jet passengers will face an increase from $120 to $480.
Notably, the tax for economy class passengers remains unchanged at $1 for both the departure tax and airport development fee.
In the amendments to the Tourism Act, the green tax is also set to double from January:
- Guesthouses with fewer than 50 rooms will see an increase from $3 to $6 per guest.
- Resorts, city hotels, and other accommodations with over 50 rooms will see their green tax increase from $6 to $12 per guest.
The government anticipates that these adjustments will yield an additional MVR 3 billion in revenue through the increased TGST, green tax, and departure taxes on foreign travelers departing from Maldivian airports.
