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.

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