A new bill introduced in Parliament proposes to amend the Tourism Act, increasing the green tax on tourists to $12 per day. The bill, submitted by ruling party MP for Maafannu Hulhangu on behalf of the government, seeks to double the current green tax rate for tourists staying in resorts, hotels, guesthouses, and safaris with more than 50 rooms.
Currently, tourists staying at such properties are charged a green tax of $6 per day, while those staying at establishments with fewer than 50 rooms pay $3 per day. Under the new proposal, the rate would increase to $12 for larger properties and $6 for smaller ones.
Additionally, the bill includes a provision exempting children under the age of two from paying the green tax starting from January 1 next year.
If passed, the changes will take effect in January 2025, and the amendments will be formulated and published in the Government Gazette within 30 days of the bill’s commencement.
The government anticipates significant revenue growth from the green tax following the amendment, estimating MVR 963.6 million in green tax revenue for 2025, with projections of MVR 1.1 billion in 2026 and MVR 1.2 billion in 2027. The Finance Ministry has indicated that the increase will not require additional government spending, making it a key measure to help reduce the budget deficit to a more sustainable level.
The green tax is aimed at promoting environmental sustainability in the Maldives, with the revenue typically allocated to environmental conservation efforts across the country.
