Malé, Maldives – President Ibrahim Mohamed Solih on Wednesday ratified the 12th amendment to the Tourism Act allowing the resumption of Green Tax collection with immediate effect.
The new amendment came following the states error in the 11th amendment to the Tourism Act passed by Maldives Parliament on June 30, and ratified by the President on July 3, which stipulated that Green Tax collection would come into effect on January 1, 2023 leaving tourist facilities in a legal limbo with the Green Tax collection.
The new amendment also stipulates that tourism establishments that had continued collection of the Green Tax since the ratification of the 11th amendment to the law must file their tax returns and pay the tax to the state unless reimbursed to the taxpayer.
It also stipulates that funds collected as Green Tax from parties who do not fall under the purview of the law or collected more than the prescribed amount must be paid in full to the state unless reimbursed to the taxpayer.
Green Tax is payable by tourists who stay in tourist resorts, tourist hotels and tourist vessels. It is also payable by tourists who stay in tourist guesthouses from October 1, 2016 onwards. Green tax is payable at the rate of 6 United States Dollars per day of stay from tourist resorts, tourist hotels and tourist vessels, and 3 United States Dollars per day of stay from tourist guesthouses.
According to Weekly Fiscal Development report by Ministry of Finance published on September 20, 2022, the state has collected MVR 687.8 million as Green Tax as of September 15, 2022. The 2022 national budget forecasts a total income of MVR 823.7 million from Green Tax alone.
