Increased Departure Tax and Airport Development Fee Come into Effect
The new rates for the Airport Departure Tax and Airport Development Fee, which apply to those tourists leaving the Maldives, have come into effect today.
On October 31st, Parliament passed three bills proposed by the government to raise various taxes, as part of efforts to increase state revenue. These include a bill to double the Green Tax, another to amend the Tourism Goods and Services Tax (TGST), and a third to raise the Airport Departure Tax and Airport Development Fee.
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Under the new rates, the Airport Departure Tax and Airport Development Fee will be increased as follows:
- 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
- From USD 120 to USD 480 for passengers travelling on private jets
In addition, the Green Tax increase will take effect on January 1, 2025, while the TGST hike is set for July 1, 2025. The Green Tax, levied under the Tourism Act, will rise from USD 3 to USD 6 for guesthouses and from USD 6 to USD 12 for resorts and city hotels, expected to generate an additional MVR 963.6 million in revenue.
The TGST, which is applied under the Goods and Services Tax Act, will increase from 16% to 17%. According to the 2025 budget report, the new measures are expected to raise an additional MVR 4.9 billion in revenue for the state.
