Law to be amended to resume collection of Green Tax currently on hold

The implementation of Green Tax has come to a halt as the most recent amendment Tourism Act states that the tax will be implemented starting next year.

Maldives Inland Revenue Authority’s (MIRA) Commissioner General of Taxation Fathuhulla Jameel confirmed to Sun on Wednesday that the taxation body could no longer enforce Green Tax.

The amendment was passed by the Parliament at the 22^nd sitting of its second session for the year held on June 30. President Ibrahim Mohamed Solih ratified the amendment on July 4.

The purpose of the latest amendment to the Tourism Act is to mandate Green Tax upon hotels and guesthouses similar to resorts.

In this regard, the amendment to the Act’s Article 35 (g) states that Green Tax will be enforced upon tourist resorts, hotels, tourist vessels and guesthouses starting from next year’s January.

Therewith, the Green Tax that was being collected from resorts till the enactment of the amendment have come to halt.

An official from Tourism Ministry said that efforts were underway to amend the law to resume the collection of Green Tax at the earliest. However, no further details were disclosed by the official.

In the second quarter of this year, MIRA collected MVR 254 million as Green Tax – which contributed to 4.8 percent of the total revenue earned by the government in the quarter.