Green Tax Jumps 72%, Raising Questions Over Environmental Funding
Aerial view of the Maldives’ islands | Photo: Envato
Green Tax collections in the Maldives reached MVR 401.2 million by 20 March 2025, reflecting a 72% year-on-year increase from MVR 233 million, according to the Ministry of Finance’s latest Weekly Fiscal Developments report.
The Green Tax is charged to tourists staying at resorts, hotels, and guesthouses, with rates varying depending on the type of accommodation. Traditionally, this revenue stream has been used to support environmental protection and waste management programmes, although specifics on how the funds are allocated remain limited in public disclosures.
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The increase in Green Tax revenue mirrors broader trends in tourism performance, particularly a rise in arrivals to high-end resorts in the first quarter of the year. Tourism Goods and Services Tax (TGST) has also climbed to MVR 2.7 billion, underlining the tourism sector’s central role in public revenue collection.
Despite the strong revenue figures, the report also reveals that actual capital spending on environmental protection remains low. Out of an approved MVR 1.5 billion budget for environmental projects—including coastal protection and renewable energy—only MVR 72.9 million has been spent so far this year. Coastal protection accounted for the bulk of that amount, with other initiatives such as waste management and renewable energy projects seeing limited disbursement.
As the Maldives continues to position itself as a sustainable tourism destination, the mismatch between Green Tax revenue and spending on environmental priorities may raise questions about transparency and long-term planning. While the tax serves as an important fiscal tool, its impact on environmental outcomes depends largely on how those funds are ultimately utilised.
