President ratifies the amendments to the Goods and Services Tax Act

President Dr Mohamed Muizzu has ratified the seventh Amendment to the Goods and Services Tax Act of the Maldives. The amendment was approved by the parliament on October 31. The amendments to the Goods and Services Tax Act, the Maldives Tourism Act, and the Taxes and Fees on Passengers Departing from an Airport Act were approved by the parliament without any additional modifications. The new amendments seek to revise the Tourism Goods and Services Tax (TGST). As such, the TGST collected from tourism-related services from January 1, 2023, will remain at 16% until June 30, 2025. Following this period, as stipulated in the Act, the TGST rate will rise to 17%, effective July 1, 2025. Meanwhile, the new measures brought to the Tourism Act, will increase the green tax for tourism service providers and guesthouses with fewer than 50 rooms from USD3 to USD6 per tourist. For resorts, the tax will rise from USD6 to USD12 per tourist, effective January 1, 2025, with children under the age of 2 exempt from this tax. Additionally, the amendments to the Airport Act will also raise airport development taxes and fees for foreign travellers. The fee for economy class travellers will rise from USD30 to USD50, while business class fares will increase from USD50 to USD120. First-class fares will jump from USD90 to USD 40, and fees for private jets will rise from USD120 to USD480. Following the ratification of the Acts, any necessary amendments to the regulations under the Acts must be completed and published in the Government Gazette within 30 days of the Act’s enactment.