Changes in airport taxes for outbound travelers take effect

The changed rates of Airport Departure Tax and Airport Development Fee levied on outbound travelers departing from the Maldives have come into effect.

Parliament passed three bills submitted by the government to increase multiple taxes verbatim on October 31^st. The tax hikes were proposed by the government to increase revenue earned to the state.

This includes legislature seeking to double the Green Tax, one to increase the Tourism Goods and Services Tax (GST) Act, and one to increase the Airport Departure Tax and Airport Development Fee.

Two of the tax hikes – Airport Departure Tax and Airport Development Fee – came into effect on Sunday.

This will see the Airport Departure Tax and the Airport Development Fee 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 travel in private jets.

Meanwhile, the Green Tax hike will come into effect on January 1, 2025, and the TGST hike will come into effect on July 1, 2025.

It will see Green Tax under the Tourism Act doubled from USD 3 to USD 6 for guesthouses and from USD 6 to USD 12 for resorts and city hotels. The change is expected to result in an additional injection of MVR 963.6 million in tax revenue.

TSGST under the Goods and Services Act will be raised from 16 percent to 17 percent.

According to the 2025 budget report, the new measures are expected to generate an additional MVR 4.9 billion in revenue.