MDP opposes hiking TGST and Green Tax

Oct 16, 2024, 10:13 AM
Minority leader Nazil. -- Photo: People's Majlis

Minority leader Nazil. -- Photo: People's Majlis

The opposition Maldivian Democratic Party (MDP) has criticized the government’s proposed bill to increase the Tourism Goods and Services Tax (TGST) and Green Tax.

The bill proposed amendments to the Tourism Act to increase TGST from 16 percent to 17 percent and Green Tax from USD 6 to USD 12.

During the debate stage in Parliament today, MDP MPs said the changes would cause serious implications.

"I don't support the government's proposed tax increase under the Tourism Act. I fully reject it. The government cannot explain why the taxes are being increased and what will happen when the taxes are increased," said minority leader Hithadhoo Dhekunu MP Ibrahim Nazil.

He said the increase in TGST and Green Tax would reduce the number of tourists coming to the Maldives and it would benefit neighbouring countries.

"I am sure that the number of tourist arrivals to the Maldives will be reduced significantly due to the tax increase. The neighbouring countries will benefit from this. They are applauding now," Nazil warned.

Vaikaradhoo MP Hussain Ziyad said the tax hike goes against the government's pledge. He also accused the government of lying to the people by claiming that the tax hike would not affect the general public.

"The reason I am not in favour of this amendment is because I feel it expands the tax base instead of expanding it, as promised by the President," he said.

Hanimaadhoo MP Abdul Ghafoor Moosa said there would be no benefit in increasing taxes without reducing government expenditure.

"Even if the government continues to increase taxes in every area possible, we will see no benefit as long as the government does not reduce its expenditure," he said.

Kendhoo MP Mauroof Zakir, with years of experience in the tourism industry, criticized the government for not consulting stakeholders.

The bills to increase TGST, Green Tax and airport fees and taxes were accepted by the Parliament with 58 votes and sent to the relevant committee for further research. MPs from the opposition MDP voted against the bills.

The bills proposed to increase TGST from June 2025 while Green Tax is planned to be increased from January 2025. The bill to increase airport fees and taxes proposes increasing fees and taxes for passengers other than Maldivians travelling in economy class. Economy class passengers are already subject to a USD 12 fee and a USD 12 tax.

Comments

Read More

Latest News

Suspect arrested for repeated public nuisance escapes facility

Ahmed Fairish, a man arrested for public nuisance and harassment, has escaped from a drug treatment facility in Himmafushi. He was transferred there under police supervision following his recent arrest on October 17. Authorities are currently searching for the suspect, who has a history of criminal behavior and making death threats.

PNC secures both seats in election for LGA board

The ruling People’s National Congress (PNC) won both seats in the election for the Local Government Authority board. PNC candidates Ali Ahmed and Maryam Zeena defeated their MDP rivals to represent local councils and Women’s Development Committees. The election occurred alongside the unopposed appointment of Kulhudhuffushi Mayor Mohamed Athif.

"MDP will end Rasmale' deal if it goes without consultation"

MDP Chairperson Fayyaz Ismail warned that a future MDP government will terminate the Rasmalé project if it proceeds without public consultation. He opposes granting land to UAE’s Eagle Hills indefinitely, citing concerns over national sovereignty and the lack of acquisition costs. Fayyaz urged President Muizzu to allow for public debate.

Milestone as Thilamale Bridge connects Villimale and Gulhifalhu

The Thilamale Bridge has reached a major milestone by physically connecting Villimale and Gulhifalhu, creating a continuous link from Male'. Developed by Afcons Infrastructure, the project is now slated for completion in September 2026. Construction progressed through multiple phases despite political disputes over the project's timeline.

Sukuk or bond issue listed in budget for 2027

The government plans to issue a $175 million international bond or sukuk in 2027 to manage foreign debt, part of a $675 million three-year borrowing strategy. Despite past failures to enter the market and a "junk" credit rating, officials hope this move will ease financial pressure following a major reserve drawdown for previous repayments.

Government to deploy an AI-powered smart traffic system in Male'

The Maldives government has included an AI-powered "Smart Traffic Enforcement System" in next year’s budget to tackle congestion in Malé. Part of the "Maldives 2.0" policy, the initiative aims to modernize traffic monitoring through digitalization. The plan also includes a new data center and digital ID system to improve public services.

"President does not have authority to allow non-Muslim residency"

Former Chief Justice Dr. Ahmed Abdulla Didi argues that the President lacks the constitutional authority to grant long-term residency to non-Muslims in Rasmalé. He asserts that such sovereign power belongs solely to the people. Didi also criticized Jamiyyathul Salaf for supporting the government's plan under specific conditions.

Newsletter

Get the latest news delivered straight to your inbox