The Parliament has concluded its preliminary debate on the Bill to increase the Tourism Tax (TGST) to 17 per cent starting next June.

The amendment to the GST Act is sponsored by West Maafannu MP Mohamed Mustafa Ibrahim. It as accepted into the Parliament with a majority vote of 52-7 on Tuesday afternoon. All present members of MDP had voted against accepting the Bill.

It has now been sent to the Whole House Committee for review.

The new bill will see the TGST raised from 16 percent to 17 percent starting June 1, 2025. The Bill also notes that the proposed hike in tourism tax will bring in an additional MVR 200 million to the state.

The government has also submitted two additional bills to seeking to double the Green Tax and raise the Airport Departure Tax and Airport Development Fee. The preliminary debate on airport taxes remains in progress.