TGST on tourism hiked to 17 per cent

The TGST on tourism has been increased to 17 per cent from yesterday.This is a one percent increase in the previous tax rate of 16 percent.

The bill to bring about this change was approved by the President on 5 November The bill will come into force on July 1, 2025.

According to MIRA, the necessary changes have been made to the systems and new rates have been implemented for the prices of goods and services in the tourism sector.

President Muizzu's government is working to expand the tax base to strengthen the economy. However, the government has assured the people that it will not levy any additional taxes and will not take any measures that will make it difficult for the people.

The government has decided to increase the green tax and airport development charge on tourism. At the same time, a certain amount is required to be withdrawn from each tourist visiting Maldives and foreign exchange earners are required to deposit foreign currency in the bank for that amount under the Foreign Exchange Act.

The government says a large amount of foreign currency has started entering the banking system following the implementation of the law.