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Maldives to increase tourism GST to 17%, double Green Tax

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 2025.

Additionally, the green tax is set to increase as follows:

  • For guesthouses with less than 50 rooms: from $3 to $6 per night per person
  • 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 January 2025.

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.

Hotelier News Desk
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