Maldives Collects USD 97.3 Million in Green Tax to Fund Environmental Projects

The Maldivian government has collected USD 97.3 million in green tax so far this year, representing a slight increase of 0.7 percent compared to the same period in 2023. The figures were released in the Weekly Fiscal Development Report published by the Ministry of Finance and Public Enterprises, covering revenue collected up to September 24. Introduced in October 2016, the green tax serves as a critical funding mechanism for environmental preservation and sustainability projects across the archipelago. The revenue is specifically earmarked for essential infrastructure and ecological initiatives, including coastal protection, water and sewerage systems, and clean environment projects designed to protect the islands' fragile ecosystems. The tax is levied on international visitors based on their accommodation type. Tourists staying at resorts, hotels, and safari vessels are charged a daily rate of USD 12 per person. Those opting for guesthouses pay a reduced rate of USD 6 per person per day, while children under the age of two are exempt from the charge. This revenue stream reflects the scale of the Maldives' tourism industry, which currently supports 180 resorts, 16 hotels, 165 safari vessels, and 927 guesthouses. By integrating environmental costs into the tourism experience, the government aims to ensure that the industry contributing most to the economy also supports the long-term resilience of the natural environment. As the Maldives faces increasing threats from rising sea levels and climate change, these funds remain pivotal in financing the coastal defenses and waste management systems necessary to safeguard inhabited islands and tourist hubs alike.