The Government of the Maldives has started amending the law to re-levy the green tax under the Tourism Act. The government has launched the amendment to the Tourism Act, which was gazetted in July last year as it states the Green Tax will be levied from January 2023.
The government is working to propose an amendment to the act with the opening of the next session of the Parliament of the Maldives. The third session of the Parliament is scheduled to open on August 16.
The Green Tax has now been discontinued, leaving the state without a large portion of its revenue. Therefore, the Attorney General's Office (AGO) is currently working on amending the law to levy the Green Tax as soon as possible.
USD6 is charged as Green Tax per tourist for each day they spend at a resort or a hotel in the Maldives, while USD3 is charged as Green Tax per tourist for each day they stay at a guesthouse. However, the government gazetted the Tourism Act now states that Green Tax will be collected from January onwards. The fourth largest foreign exchange revenue collection is from Green Tax.
Ministry of Finance has revealed the Maldives received USD4.5 million as Green Tax in June alone. The government is also working to increase the tax rates on large guesthouses by changing the current rates.