Effective today, the Maldives has introduced new tax increases targeting the tourism sector, raising the Tourism Goods and Services Tax (TGST) from 16% to 17%.

The TGST hike, starting from 1 July 2025, follows the Seventh Amendment to the Goods and Services Tax Act (Law No. 10/2011), which was ratified on 5 November 2024. The change affects all businesses operating within the tourism industry, including resorts, hotels, guesthouses, and liveaboards.

In a separate move earlier this year, the government also revised the Green Tax rates. Since January 2025, the tax has been doubled from $6 to $12 per person per night for guests staying at resorts and larger tourist establishments. For guesthouses and smaller tourism providers with fewer than 50 rooms, the Green Tax has increased from $3 to $6 per person per night.

The government has also proposed eliminating the Green Tax for children under the age of two, who are currently included in the taxation.

These changes follow an earlier increase in January 2023, when the TGST rose from 12% to 16%, marking a continued effort by the government to leverage the Maldives’ strong and growing tourism economy as a source of additional national revenue.