The most recent amendment to Tourism Act of the Maldives has placed notable blocks on Maldives Inland Revenue Authority (MIRA) in collecting Green Tax revenue.
This intervention comes thanks to the date effect for the green tax collection in a provision of the new amendment.
According to the 11th amendment of the Tourism Act, the effective date for collecting green tax will commence on 01st January 2023. This recent amendment was earlier passed by the Maldivian parliament on 30th June.
Maldivian President ratified the bill later during previous month, on 03rd July.
MIRA began collecting green tax from tourism properties on 01st November 2015. However, based on this recent change, the authority cannot collect said tax until the current year is over.
Initial motive for the amendment was to include guesthouses and boutique hotels with 50 rooms or more in residential islands among tourist properties liable for green tax.
Under the tax regulations, all tourism properties must settle green tax at a rate of USD6.00 per tourist per day.
Following the amendment, MIRA claims of its legal ramifications. The authority since lodged a request with the Ministry of Tourism to revise this change. However, the taxation authority is expected to uphold the changes of the act until it is revised.
Earlier, MIRA reported of collecting a year-to-date total of MVR547 million in green tax as of June 2022.
Due to the current barricade, state is looking at an estimated loss of MVR600 million for the remainder of the year.