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Green Tax amendment proposed to the Parliament

The Government of Maldives has submitted an amendment to Tourism Act to re-levy Green Tax. The amendment was proposed by Parliamentarian Abdulla Saneef.

The Green Tax has now been discontinued leaving the Maldives without a large portion of its revenue. The fourth largest foreign exchange revenue collection is also from Green Tax. Therefore, the Attorney General's Office (AGO) made amendments to the law to re-levy the tax as soon as possible. As such, the government has submitted the amendment to the Tourism Act, which was gazetted in July last year, as it states the Green Tax will be levied from January 2023.

USD6 is charged as Green Tax per tourist for each day they spend at a resort or a hotel in the Maldives, while USD3 is charged as Green Tax per tourist for each day they stay at a guesthouse. However, the Tourism Act now states that Green Tax will be collected from January onwards.

Ministry of Finance has revealed the Maldives received USD4.5 million as Green Tax in June alone. The government is also working to increase the tax rates on large guesthouses by changing the current rates.