Donald Trump has secured a historic victory in the 2024 U.S. Presidential election, becoming the 47th President of the United States. He triumphed over Democratic candidate and Vice President Kamala Harris, winning 277 Electoral College votes. This surpassed the 270 votes required to win the election. According to the Associated Press, Donald Trump also led in the popular vote with 51% compared to democratic candidate Vice President Kamala Harris’ 47.5%. Donald Trump received more than 71.7 million votes, demonstrating widespread support across the country.
Dr. Mohamed Muizzu, the President of the Maldives, congratulated Donald Trump on Twitter, saying:
“Warm congratulations to President-elect @realDonaldTrump on your electoral victory. The Maldives and the United States share a strong partnership based on mutual respect, goodwill, and understanding. I look forward to strengthening our cooperation, addressing mutual challenges, and working towards advancing global peace and prosperity.”
This victory marks a significant achievement for Trump, as he becomes only the second U.S. president in history to serve non-consecutive terms, following in the footsteps of Grover Cleveland. Donald Trump, previously the 45th President of the United States, returns to the White House with renewed support from voters in key swing states, further strengthening the Republican Party’s influence on American politics.
Early on Wednesday at the Palm Beach County Convention Center in Florida, Trump addressed his supporters, stating,
“America has given us an unprecedented and powerful mandate.”
He expressed deep gratitude for the opportunity to serve once again, promising to lead the nation with strength and determination. With his speech, the crowd erupted in cheers, reinforcing the overwhelming enthusiasm for his return to office.
With this victory, Senator JD Vance will assume the role of Vice President of the United States. As Trump prepares for his second term in office the nation looks ahead with anticipation to the next four years under his leadership.
On 5 November 2024, the Maldives government established important changes to three key tax acts that will impact the tourism industry and travelers. These amendments are part of the government’s economic strategy to reduce the budget deficit and increase foreign currency inflows. The updated rates for Tourism Goods and Services Tax (TGST), Green Tax (GRT), and Airport Taxes and Fees were outlined in the amendments, and the changes are expected to affect both businesses and travelers. The information below is sourced from the Maldives Inland Revenue Authority (MIRA).
Tourism Goods and Services Tax (TGST)
Starting 1 July 2025, the TGST rate for tourism sector goods and services will increase from 16% to 17%. This increase will be effective after a transitional period from 1 January 2023 to 30 June 2025, when the rate will remain at 16%.
This change impacts tourism businesses, particularly those who need to prepare for the rate increase. Additionally, the Seventh Amendment to the Goods and Services Tax Act introduces a key update: staff cafes in tourism establishments and shops can now register for the general GST at 8%. Previously, only staff shops had this option, giving businesses more flexibility when catering to their employees.
Green Tax (GRT) Changes
Effective 1 January 2025, the Green Tax (GRT) rates will change. The Fourteenth Amendment to the Maldives Tourism Act sets the following new rates:
Tourist resorts, integrated resorts, resort hotels, and tourist vessels: USD 12 per tourist per day.
Hotels and guesthouses on uninhabited islands: USD 12 per tourist per day.
Hotels and guesthouses on inhabited islands:
For more than 50 rooms: USD 12 per tourist per day.
For 50 rooms or fewer: USD 6 per tourist per day.
Additionally, from 1 January 2025, infants under the age of 2 years will be exempt from the Green Tax, offering relief for families traveling to the Maldives.
Airport Taxes and Fees
The amendments to Departure Tax and Airport Development Fees (ADF) will take effect on 1 December 2024. These changes will affect both Maldivian and foreign passengers departing from the Maldives. The updated rates are as follows:
However, the ADF and Departure Tax rates for Maldivian economy class passengers will remain unchanged.
These changes are part of the Second Amendment to the Airport Taxes and Fees Act and will affect all passengers departing from Velana International Airport.
Refund Policy for Excess Taxes
Passengers who have been charged incorrectly or have overpaid the Departure Tax or ADF will be able to request a refund from the Maldives Inland Revenue Authority (MIRA). This provision ensures that any excess taxes paid by passengers will be refunded.
Implementation Dates and Regulations
The effective date for the amendments is November 5, 2024, but the full implementation of these changes will happen on different dates:
TGST: The increase to 17% will take effect from 1 July 2025.
Green Tax: The new rates will apply starting on 1 January 2025.
Airport Taxes and Fees: The updated rates will be enforced on 1 December 2024.
The Maldives Inland Revenue Authority (MIRA) will publish regulatory amendments within 30 days to ensure smooth enforcement of these changes.
These recent changes to the Maldives’ tax structure will significantly impact both businesses and tourists. Tourists planning to visit the Maldives should be prepared for higher taxes, especially on accommodation, airport services, and departure fees. Businesses in the tourism sector will also need to adjust to the new rates and ensure that they comply with the updated regulations.
Stay informed and prepared for your next visit to the Maldives!
This article’s information is sourced from MIRAand reflects the latest updates to the Maldives’ tax policies.
