The revised rates for the Airport Departure Tax and Airport Development Fee for tourists leaving the Maldives have officially come into effect today, following the passage of legislation aimed at boosting state revenue.
The updated rates, approved by Parliament on 31 October, include significant increases across all passenger categories:
- Economy Class: Foreign passengers will now pay USD 50, up from USD 30.
- Business Class: Both local and foreign passengers will pay USD 120, up from USD 90.
- First Class: The fee has risen from USD 90 to USD 240.
- Private Jets: Passengers will pay USD 480, up from USD 120.
These changes are part of a broader government initiative to raise revenue, which includes amendments to the Green Tax and Tourism Goods and Services Tax (TGST).
Green Tax and TGST Hikes Scheduled for 2025
The Green Tax increase will take effect on 1 January 2025. The tax will double from USD 3 to USD 6 for guesthouses and from USD 6 to USD 12 for resorts and city hotels. The government expects this change to generate an additional MVR 963.6 million in revenue.
The TGST rate, applied under the Goods and Services Tax Act, is set to rise from 16% to 17% starting 1 July 2025. This measure is projected to add MVR 4.9 billion to state revenue in the upcoming year.
Revenue-Boosting Measures in Focus
These adjustments are part of the government’s efforts to strengthen fiscal stability amidst rising public debt. The increased levies are expected to make significant contributions to funding public services and development projects, with tourism remaining a critical pillar of the Maldivian economy.
While the increases aim to boost revenue, their impact on the tourism sector remains a key point of discussion among stakeholders. The government continues to emphasise the need for sustainable revenue streams to support long-term economic growth.
