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Tourism-Fueled Environental Tax Revenue in Maldives Doubles to Nearly USD 78 Million

The Ministry of Finance and Planning has reported a dramatic increase in Green Tax revenue, with collections reaching USD 77.83 million in the first seven months of the year. The figure represents a 102 percent rise compared with the USD 41 million collected during the same period in 2024, underscoring the growing fiscal contribution of the Maldives’ tourism sector to national environmental sustainability efforts.

Established in October 2016, the Green Tax was introduced as an environmental levy on tourists staying in resorts, hotels, guesthouses, and aboard tourist vessels. Its primary objective is to generate funding for ecological infrastructure and conservation programmes across the island nation.

In its July revenue report, the Maldives Inland Revenue Authority (MIRA) confirmed the surge in collections, noting that the USD 77.83 million gathered between January and July reflects a marked acceleration in revenue generation for environment-related projects.

The tax is structured according to the type and capacity of tourist accommodation. Visitors at resorts and safari vessels are charged USD 12 per person per day. Hotels and guesthouses located on inhabited islands apply a tiered rate: establishments with more than 50 registered rooms levy USD 12 per person daily, while those with 50 or fewer rooms charge USD 6. Entities registered under the Green Tax framework are required to submit monthly statements and remit payments by the 28th day of the following month.

Funds collected through the levy are channelled directly into a range of environmental initiatives. These include the development of water and sewerage systems, coastal protection infrastructure, clean environment projects, and the establishment of comprehensive water supply networks across the islands.