Parliament committees approve rate hikes on Green Tax, Airport Tax

The Parliament’s Public Accounts Committee’s Sub-Committee and the Committee on Economic Affairs on Monday approved the new bills seeking to increase the rates of Airport Taxes and Fees and Green Tax.

With the proposed amendment to the Tourism Act, the government is seeking to double the current Green Tax rates.

Both bills, first accepted to the Parliament’s Whole House Committee on October 16^th – and faced some dissent among its members – was sent for sub-committee reviewal on October 23^rd.

The amendment seeking to increase Airport Taxes and Fees received unanimous approval during Monday’s committee meeting, while the revision to the Tourism Act was approved with 13 votes.

The Tourism Act amendment bill was submitted by South-Machchangolhi MP Musthafa Hussain on behalf of the government, which highlights:

• An increment to USD 12.00 on all eligible tourist properties levying a Green Tax per tourist per day at the rate of USD 6.00
• Increasing the Green Tax to USD 6.00 on all tourist properties currently levying a Green Tax of USD 3.00 per tourist per day

The other bill, seeking a rate hike on Airport Taxes and Fees, was submitted by Gemanafushi MP Asadulla Shihab. The bill proposed to increase Departure Tax rate effectively from December 2024 onward, while other prepositions include:

• No changes to the Departure Tax of USD 12.00 levied on outbound local travelers on economy-class
• Departure Tax increment from USD 30 to USD 50 for outbound international travelers on economy class
• Departure Tax increment from USD 60 to USD 120 for outbound local and international travelers on business class
• Departure Tax increment from USD 90 to USD 240 for outbound local and international travelers on first class
• Outbound travelers in private hires/jets, a Departure Tax increment from USD 120 to USD 480

The rate hikes for the Airport Development Fee was also suggested, at the same rate of increment as that of Departure Tax.