The government of the Maldives has introduced a new taxation bill to the parliament on Monday, 14th October 2024, proposing an increase in the Tourism Goods and Services Tax (TGST) and Green Tax in 2025.

Under this proposal, the TGST for tourists would rise to 17%, and the Green Tax would double from $3 to $6. The TGST increase is expected to take effect by June 2025, while the Green Tax hike is expected for January 2025.

Guesthouses with fewer than 50 rooms will be required to pay a Green Tax of $6 per night per guest. However, the government plans to exempt children under the age of two from this tax. The proposal aims to raise tourism-related taxes to increase foreign exchange earnings and strengthen the country’s foreign currency reserves.