Parliament approves bill to resume Green Tax collection

The collection of Green Tax has been resumed after two months.

In July this year, the Parliament passed an amendment to the Tourism Act to review the rate of Green Tax. As per the amendment, Green Tax will be charged from January 1, 2023, onwards. Therefore, questions were raised if the government could continue charging Green Tax. Another amendment was later submitted to correct the government's oversight and re-impose the Green Tax before January 1, 2023.

The amendment was passed by the Parliament on Wednesday. Shortly after the amendment was passed, President Ibrahim Mohamed Solih ratified 12 amendments to the Tourism Act. As per the amendment, the Green Tax will be levied once the amendment is ratified and gazetted.

According to the amendment, if any tourism establishment charged Green Tax from tourists during the period from July until the new amendment came into effect, the money must be refunded to the tourist. If the money is not refunded, it must be paid to the state, it said. If Green Tax was charged from a person other than those mentioned in the law, or if any person was overcharged, the money must be refunded or paid to the state.

In July, the government received MVR 61 million in Green Tax.