Green taxes to be introduced for guesthouses

  • US$ 6 as green tax
  • Industry concerns over taking the tax
  • Businesses expected to shrink

An amendment has been proposed to the Tourism Act, calling to instate the green tax for guesthouses.

The green tax introduced last year is now applicable to tourists in resorts, hotels and safaris. Green tax is charged at US$ 6 per person per day. The amendment was proposed by Majority Leader Ahmed Nihan Hussain Manik.

Guesthouse operators had expressed concern over the amendment, stating the average rates will increase and impact the bottom line. Initially, when green tax was introduced, guesthouses were also included but it was removed following concerns expressed by businesses.

Last year green taxes earned the state MVR 45.5 million.