Maldives: Amendments to GST, tourism act, and airport fees ratified

Several amendments to tax laws, which were passed during in Parliament on October 31 and ratified by the president on November 5, 2024, have been published in the government gazette.

The seventh amendment to the Goods and Services Tax (GST) Act will increase the tourism goods and services tax (TGST) from 16% to 17%, effective July 1, 2025. Additionally, effective November 5, 2024, goods and services sold in cafes within tourist establishments, authorized by the Ministry of Tourism and operating exclusively for employees, will be subject to an 8% GST rate.

The fourteenth amendment to the Maldives Tourism Act revises the green tax payable per night for various types of accommodations, effective January 1, 2025. For tourist resorts, integrated resorts, resort hotels, tourist vessels, and hotels and guesthouses located on uninhabited islands, as well as hotels and guesthouses with more than 50 rooms located on inhabited islands, the green tax will increase from US$6 to $12. For hotels and guesthouses with 50 rooms or fewer on inhabited islands, the green tax will increase from $3 to $6. Infants under the age of two will be exempt from the green tax starting January 1, 2025.

The second amendment to the Airport Taxes and Fees (ATF) Act revises the departure tax and airport development fee for passengers departing from the Maldives, effective December 1, 2024. The revised fees based on travel class are as follows:

• For economy class, the fee remains unchanged for Maldivians at $12 and increases from $30 to $50 for foreigners
• For business class, the fee increases from $60 to $120 for both Maldivians and foreigners
• For first class, the fee increases from $90 to $240 for both Maldivians and foreigners
• For private jet passengers, the fee increases from $120 to $480 for both Maldivians and foreigners.

Read a November 2024 report prepared by the KPMG member firm in the Maldives