Tax, rent from remote atolls to be reduced to boost tourism

Tourism Minister Ibrahim Faisal has emphasized the need to lower tourism taxes and rent in remote atolls in order to boost tourism in those areas while noting efforts are currently being made to achieve this.

Responding to questions at the Parliament on Wednesday, the Minister said tourism in the Maldives is abundant in the following atolls: Kaafu, Raa, Baa, Vaavu, Alifu Dhaalu and Alifu Alifu. He added that proposals from foreign investors are usually received for these atolls.

In light of this, Minister Faisal detailed that the government has decided to provide significant easements for investors investing in tourism in atolls where tourism is not widely practiced.

“We believe the acquisition cost of such places should be reduced; that the land rent should be reduced as well alongside other easements for taxes,” he stressed.

Minister Faisal said the Ministry will be submitting the relevant amendments to the Parliament to enforce these changes, adding he does not believe tourism can be introduced at atolls where it is presently non-existent without these changes.

He added that efforts were already underway to submit amendments to the law, which he noted that upon completion, will be submitted to the Parliament via Attorney General Ahmed Usham,

The Minister’s remarks come at a time the government has decided to increase several taxes related to tourism. They include TGST, Green Tax and Airport Departure Tax.  Development Fee.

In this regard, TGST will be increased from 16 percent to 17 percent while Green Tax will be doubled from 3 percent to 6 percent for guesthouses and from 6 percent to 12 percent for resorts and city hotels.

Meanwhile, the Airport Departure Tax and Airport Development Fee will be raised from USD 30 to USD 50 for foreign ‘economy class’ passengers, from USD 90 to USD 120 for both local and foreign ‘business class’ passengers, from USD 90 to USD 240 for ‘first class’ passengers, and from USD 120 to USD 480 for passengers who depart from private jets.

Finance Ministry projects approximately MVR 3 billion in revenue with these changes.