Statistics released by the Maldives Inland Revenue Authority (MIRA) indicate a significant increase in green tax revenue from guest houses compared to 2023. According to MIRA’s 2023 annual report, USD 408,650 was collected as green tax from guest houses, marking a notable increase from the USD 246,433 collected in 2022. This represents a substantial rise of 66.1%. Guest houses contribute 4% of the total green tax revenue.
The green tax is imposed on tourists visiting the Maldives to support environmentally friendly initiatives and is levied on resorts, guest houses, hotels, safaris, and tourists themselves. The revenue obtained through the green tax has increased significantly, particularly from hotels in residential areas and tourist guest houses.
Since January 1, 2023, hotels in residential areas and tourist guest houses with more than 50 rooms have been charged USD 6 per day. Meanwhile, hotels in residential areas and tourist guest houses with 50 rooms or fewer are required to pay a green tax of USD 3 per day.
Despite the substantial increase in revenue from guest houses, the majority of green tax revenue attained by the government, totalling USD 3 million in 2023, predominantly comes from resorts, constituting 91.5% of the total revenue generated.
The significant rise in green tax revenue from guest houses highlights the growing contribution of this sector to the Maldives’ environmentally friendly initiatives. The increase also reflects the effectiveness of the new tax rates introduced at the beginning of 2023.
As the Maldives continues to attract tourists from around the world, the green tax plays a crucial role in funding initiatives aimed at preserving the country’s unique and fragile ecosystem. The increased revenue from guest houses will bolster these efforts, ensuring that the Maldives remains a top destination for eco-conscious travellers.
The Maldives Inland Revenue Authority’s report underscores the importance of sustainable tourism and the positive impact of targeted tax policies on environmental conservation. With continued growth in green tax revenue, the Maldives is well-positioned to enhance its green initiatives and maintain its commitment to environmental stewardship
