President Mohamed Muizzu, less than a year after pledging not to raise any taxes, on Tuesday ratified amendments that will raise tourism goods and services tax (TGST), green tax, and airport fees.

The bills signed into law by the President were passed by Parliament on 31 October 2024. The laws were gazetted on Tuesday, and regulations under the laws must now be updated and gazetted within 30 days.

With an amendment to the Goods and Services Tax Act of 2011, TGST will be increased from 16 percent to 17 percent, effective from June 2025. TGST collection for 2025 is expected to reach MVR 9.9 billion (US$642 million).

Meanwhile, the amendment to the Tourism Act of 1999 will see the green tax increase from US$6 to US$12, starting January 2025— properties with less than 50 rooms will now have to pay US$6, double the previous US$3.

Airport taxes and fees will also increase starting December this year, with all levies and taxes—except those for Maldivians travelling in economy class—seeing hikes.

Muizzu, during his presidential campaign, reiterated on various occasions that he did not intend to raise taxes.

During the Presidential Debate, hosted by Sangu TV in September 2023, the now Minister of Youth Empowerment, Information and Arts, Ibrahim Waheed—acting then as debate moderator—asked Muizzu if he planned to introduce additional taxes in order to pay the US$1 billion in debt repayments due in 2026.

“We will not introduce any additional taxes. We will use the existing taxes to expand the tax base. This means that the unfinished resorts will be completed, and in addition we will be able to get this available money from other economic sectors, especially fisheries,” Muizzu had said at the time.

The President, throughout several instances in his campaign, consistently committed to not raising any taxes.

“When we talk about expanding the tax base, some say, on Facebook pages for example, that we are going to levy an additional tax; [that] we are going to increase the tax. This is a deception. When I say expanding the tax base, in terms of tourism TGST, if you provide money to complete the [unbuilt] resorts, we will bring more investors to the tourism industry, we have set our economic agenda to increase the revenue from those taxes,” Muizzu had said on 3 March while speaking at Dhuvaafaru Island in Raa Atoll.