Tourism Minister Moosa Zameer has stated that green taxes from guesthouses were taken to increase earnings for the budget and reduce the state deficit.
Responding to the questions posed by the MPs of the Parliament’s Financial Committee, Minister Zameer said that green taxes can be taken from guesthouses but a period was required for that. He recommended that green taxes be started from the last quarter of the year.
Many guesthouse owners have expressed concerns over this, stating that they also had pre-agreed contracts to bring in guests and that bringing in a change immediately was a difficult thing. They also said that they needed an adaptation period. Introducing a green tax, which will move a large share of their earnings will impact their bottom lines adversely.
President Yameen had announced that a supplementary budget will be announced to provide many of the aspects not listed in this year’s budget.