The Maldives has passed amendments to raise taxes and fees associated with tourism. On November 5, 2024, President Mohamed Muizzu approved changes to the Tourism Act, the Value Added Tax Act, and the Taxes and Fees on Passengers Departing from Maldivian Airports Act. These revisions will increase the Tourism Goods and Services Tax (TGST) on tourism services from 16% to 17% in July 2025, projected to generate an extra MVR 202 million in revenue. Additionally, from January 2025, the green tax for accommodations will double, anticipated to bring in MVR 964 million to support environmental initiatives. Revised airport fees will also boost revenue by MVR 1.5 billion. Collectively, these changes are expected to yield MVR 2.7 billion in additional government revenue.
Maldives approves tax hikes on tourism to boost revenue and sustainability
