Following the new amendments that were made effective since January 2025, Green Tax revenues collected to the state has almost doubled, reports the Ministry of Finance.
According to the Ministry, the state has collected a total of MVR 400 million as of March 20th in Green Tax, compared to the MVR 233 million collected in the corresponding period last year.
With the amendments, tourist properties that were previously settling USD 6 per head per stay is now settling Green Tax at the rate of USD 12 per head per stay, which is a 100% increment on the rate.
The current administration aims collecting an annual total of MVR 964 million in Green Tax by the end of 2025 fiscal run. Moreover, the state has also collected 40% of the projected Green Tax revenue during the last three months.
Besides Green Tax, Airport Development Fee was hiked effective December 2024, which resulted in a 35% increment in the revenue so far this year. As such, the government has collected MVR 340 million in Airport Development Fee so far this year compared to MVR 233 million in the same period last year.
Effective from July 2025, Tourism Goods and Services Tax (TGST) will be increased to 17% on relevant establishments.
The Ministry of Finance projects a revenue increase of MVR 2.7 billion with the new tax rates.