Tourism tax increases expected to boost Maldives’ revenue by MVR 2.8 billion
Maldives government expects to collect an additional MVR 2.8 billion in revenue following the approval of bills aimed at increasing tourism-related taxes, including the Tourism Goods and Services Tax (TGST).
Parliament is set to resume Monday, where these changes will be discussed.
The proposed changes to the TGST and green tax rates include:
- TGST: Increase from 16% to 17%.
- Green tax for guesthouses: Increase from $3 to $6.
- Green tax for resorts and city hotels: Increase from $6 to $12.
Additionally, the government has proposed increases in airport departure taxes as follows:
- Departure fee for foreigners in economy class: Increase from $30 to $50.
- No change in the fee for Maldivian economy class passengers.
- Departure fee for business class passengers: Increase from $60 to $120.
- Departure fee for first class passengers: Increase from $90 to $240.
- Departure fee for passengers on private jets: Increase from $120 to $480.
The finance ministry projects that the new tax measures will generate additional revenue equivalent to 3% of the country’s GDP starting next year. The breakdown of the expected revenue includes:
- Airport taxes: MVR 1.6 billion from December 1.
- Green tax: MVR 963.6 million from January.
- TGST: MVR 201.9 million from June 1.
This would amount to a total of MVR 2.8 billion in additional revenue for the government, with the increased taxes contributing to revenue generation starting next year.
According to the state tax authority, the government collected MVR 19.6 billion in revenue during the first seven months of this year.
Related Posts
Maldives resort rates down 2 percent as supply increases
[vc_row][vc_column][vc_column_text]The rise in the supply of new hotels is resulting in the fall of occupancy rates along with average rates of resorts in the Maldives, according to data on the third quarter of 2017 by the country’s central bank. Maldives Monetary Authority’s economic bulletin for the third quarter revealed that the average occupancy rate of […]
Louvre-Sarovar deal means Chinese growth in India
[vc_row][vc_column][vc_column_text] Louvre Hotels Group’s recently announced purchase of Sarovar Hotels is one of the first excursions of Chinese capital into the Indian hotel industry, writes Hotel News Now’s Terence Baker. Sources tell Baker the deal, which was not given an official price tag in Thursday’s announcement, is remarkable because of the level of mistrust in the […]
Oriana Migliaccio: The Marine Guardian Transforming Conservation in the Maldives
At the heart of Anantara’s commitment to tailored luxury and authentic experiences lies the passionate work of Oriana Migliaccio, a marine biologist whose devotion to oceanic preservation resonates deeply in the sky-blue waters of the Maldives. Oriana, a PADI Master Scuba Diver Trainer with a PhD in Life and Biomolecular Sciences, embodies the spirit of […]
