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MVR 719 Million in Green Tax Collected in First Eight Months of 2024

Tourists exploring a local island in the Maldives

The Maldives Inland Revenue Authority (MIRA) has reported that the state collected MVR 719 million in green tax during the first eight months of 2024, marking a notable increase from the previous year.

The green tax, levied on tourists staying at resorts, guesthouses, city hotels, and safari vessels, is used to fund environmentally friendly initiatives across the country. According to MIRA’s data, the green tax collected in US dollars during this period amounted to $46 million, representing a 3.7% rise compared to 2023.

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In comparison, the state collected MVR 686 million in green tax during the same period last year, which amounted to $44 million. This year’s data shows a steady growth in revenue, with August alone bringing in MVR 87 million, compared to MVR 69 million collected in August 2023.

The green tax is charged at different rates depending on the type of accommodation. Tourists staying at hotels operating in residential areas or guesthouses with more than 50 rooms are charged US$6 per day, while those staying at smaller guesthouses with 50 rooms or less are charged US$3 per day.

When the green tax was first introduced, the Maldives became one of the few countries in the world to levy such a tax specifically for environmental conservation. The decision was made in recognition of the country’s vulnerability to environmental degradation and the need to invest in long-term sustainability projects.

 

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