Maldives hikes departure fees, TGST, Green Tax

President Mohamed Muizzu on Tuesday ratified amendments to several laws, leading to an increase in the fees charged for passengers departing from airports, a higher Tourism Goods and Services Tax (TGST), and a doubled green tax.

The amended laws include the Tourism Act, the Value Added Tax Act, and the Taxes and Fees on Passengers Departing from a Maldivian Airport Act.

Under the ratified amendments, TGST on tourism services will rise from 16% to 17%, effective July next year.

Additionally, the departure tax and airport development fee will see changes from December 1.

According to the amendments:

• The airport departure fee for foreign nationals in economy class will rise from $30 to $50.
• The fee for business class passengers will increase from $60 to $120.
• The fee for first class passengers will be raised from $90 to $240.
• The fee for jet passengers will increase from $120 to $480.

However, the amendments will not alter the tax imposed on economy class passengers, which remains at $1 for both the departure tax and airport development fee.

The amendments to the Tourism Act also double the green tax. Starting in January:

• The green tax for guesthouses with fewer than 50 rooms will increase from $3 to $6.
• For resorts, city hotels, and other establishments with more than 50 rooms, the green tax will increase from $6 to $12.

The government estimates that these changes will generate an additional MVR 3 billion in revenue, stemming from the increased TGST, green tax, and departure taxes on foreign travellers using Maldivian airports.