Maldives Passes Tax Hike Bill - Lets Go Maldives

Maldives Passes Tax Hike Bill

November 23, 2022

Tax Updates – Maldives 23/11/2022

The parliament of the Maldives have passed the government proposed bill to increase the country’s tourism Goods and Service Tax from the current 12% to 16% effective 01st January 2023 and applies to goods sold and services supplied by tourist resorts, tourist hotels, guesthouses, picnic islands, tourist vessels and yacht marinas authorized by the Tourism Ministry and will be taxed on the total value of the transaction.

Along with Tourism Goods and Service Tax the GST will also increase from 6% to 8%.

Maldives President Ibrahim Mohamed Solih ratified the amendment bill to increase the tax rates. Travel firms quoting holiday package prices will need to revise prices effective from 1 January.

Quoting the reason for the increase, Minister of Finance Ibrahim Ameer said the country’s inflation rate would remain low compared to other countries despite the tax hikes. He estimated the tax increase would be just one of many factors raising inflation from around 3% this year to 5.4% in 2023, noting it was still well below the inflation rate in the EU and the UK.

The government expects to generate USD63 million from GST and USD136 million from TGST by next year, with a total expected revenue of USD195 million.

PLEASE DO NOT MAKE ANY PAYMENTS TO LETSGOMALDIVES BASED ON BANKING INFORMATION PROVIDED VIA TEXT MESSAGES. THE ONLY FORMS OF COMMUNICATION AND METHODS OF PAYMENT AUTHORISED BY LETSGOMALDIVES ARE SET OUT BELOW.

It’s been brought to our attention that there’s been a trend of scammers stealing from our clients by pretending to be part of our organization and directing money to their personal accounts. While we continue to work on improving our security and providing a better service overall, we urge you to take some extra precautions to ensure that you are protected from said fraudsters.

Please be aware that we will not provide banking details or request payment via WhatsApp or any other messaging platform. Valid communication regarding payment details will only be sent from the following email address: accounts@letsgomaldives.com

As a further precaution, please do not make any payments to any accounts purporting to be from LetsGoMaldives other than the following: