Government proposes to reduce GST on Maldivian air travellers

The government has proposed to reduce Goods and Services Tax (GST) rate on Maldivian air travellers to 6 percent.

Following a recent amendment of the GST Act, Maldivian air travellers (domestic) are charged GST at the same rate as tourists – 8 percent.

The government has also proposed an amendment to the GST Act to introduce GST on communication services.

The President’s Office said that bills have been sent to the parliament proposing amendments to three revenue laws.

They are, in addition to the aforementioned amendments to the GST Act, an amendment to the Airport Service Charge Act, to increase Airport Service Charge on passengers departing from Maldivian airports from $18 to $25; and amendments to the Maldives Tourism Act, to change the fees related to increased lease periods for islands given for resort development, to extend Bed Tax until 31 December 2014, and to define the authority of Maldives Inland Revenue Authority (MIRA) regarding charging Bed Tax.