The Maldives Parliament has commenced discussions on a proposed bill to amend the Tourism Act, which aims to raise the green tax by 100%.

The bill was introduced on behalf of the government by Mustafa Hussain, Member of Parliament for the Machangolhi Dhekunu constituency.

Under the current law, the green tax applies to resorts, hotels, tourist vessels, and guesthouses operating in residential areas with more than 50 rooms. Tourists staying at these establishments are required to pay USD 6 per person, while smaller establishments charge USD 3 per person. The proposed amendment seeks to double these rates, increasing the green tax to USD 12 and USD 6, respectively.

Importantly, the amendment specifies that tourists under the age of two will continue to be exempt from paying the green tax.

If passed, the changes will take effect from January next year, contributing an estimated MVR 963.6 million in additional revenue for the state in the fiscal year 2025, according to the bill.

The green tax is part of the Maldives’ efforts to fund environmental preservation and sustainable tourism, addressing the impact of tourism on the nation’s fragile ecosystems. As the bill is debated, lawmakers are considering the balance between boosting state revenue and maintaining the country's appeal as a tourist destination.