Tax rate on domestic air travel for locals reduced to 6 percent

Maldives Inland Revenue Authority (MIRA) will be charging the normal 6 percent tax on domestic travel instead of the 12 percent, aimed at tourists, from today.

A MIRA press statement read that the amendments to the 2011 tax act would come into effect starting December 1.  The amendment makes no changes to the requirement of foreign workers in the country to pay 12 percent T-GST on the domestic air travel.

According to the changes, employees would also be charged only 6 percent GST at staff shops in resorts, following changes to the law made in the Majlis last month.

Previously, former President Mohamed Nasheed had made remarks about the hike in T-GST from 8 to 12 percent, noting that a flight to the south of Maldives had become more expensive than a flight to India or Sri Lanka as a result.


3 thoughts on “Tax rate on domestic air travel for locals reduced to 6 percent”

  1. A 4% tax cut on travel expenses is nothing compared to the 10%~20% average increase in price on staple foods.

  2. Under International Law countries are not allowed to charge different rates for local and higher tax rates for visitors.

    I assume the government have put aside the money that will be levied against them in financial penalties for taking this action in contradiction to world business practices.

    Does the rest of the world charge Maldivians a different level of tax when they use other countries domestic airlines?


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