President Abdulla Yameen has ratified revisions to the Maldives Tourism Act and the Goods and Services Act today.
The amendments were passed at an extraordinary sitting of the People’s Majlis and will allow the government to hike Tourism Goods and Services Tax (T-GST) from 8 to 12 percent starting in November this year.
The US$8 bed tax will restart in February and will continue until November. The government will also be able to collect resort lease extension fees in a lump sum within two years.
The Finance Ministry had initially estimated that new revenue-raising measures would bring in MVR3.4 billion (US$224 million).
However, amendments were not passed as per the ministry’s proposals, and Finance Minister Abdulla Jihad has said “numbers will not match” in the budget.
Additional revenue raising measures include levying a 6 percent tax on telecommunications, increasing airport departure fees to US$25, leasing out 12 islands for resort development, and revising import duties.