The Parliament, on 16 October, accepted for consideration two bills seeking to increase the Tourism Goods and Services Tax (TGST), Green Tax, as well as Airport Fees and Taxes. The bills were subsequently approved to be sent to committee.
The Mohamed Muizzu administration proposed increasing TGST and green tax as part of amendments to the Tourism Act. Airport Fees and Taxes will be increased through amendments to the Airport Taxes and Fees Act.
The bill to increase the TGST and Green Tax was accepted for consideration by 58 votes, with 10 members of Parliament (MPs) voting against. A total of 68 members took part in the vote.
The vote to consider the amendment to increase airport fees and taxes also saw the same result.
MPs belonging to the opposition Maldivian Democratic Party (MDP) voted against the bills, while MPs belonging to the Maldives Development Alliance (MDA) also spoke against the amendments.
Meanwhile, the proposed amendments received the full backing of all MPs belonging to the administration-aligned People’s National Congress (PNC).
As such, the relevant committee of Parliament will examine the bills, which will then be sent back for a floor vote. Parliament, leading up to the floor vote, may decide to send the bill back to committee or to approve the amendment.
The government’s proposed amendment to the Tourism Act is to increase the TGST from 16 per cent to 17 per cent starting June 2025. The bill also proposes to double the green tax, from US$6 to US$12 starting January 2025.
The bill, as it pertains to the Airport Taxes and Fees Act, proposes to increase airport taxes and fees for all passengers, except for locals traveling in economy class. Locals travelling in economy class will continue to be charged a US$12 fee and a US$12 tax.
