Housing Minister Dr Abdulla Muththalib has said that goods and services tax collected from resorts in the Rasmale project will be significantly higher than the amounts currently received from existing resorts.
The minister’s comments relate to the USD 20 billion waterfront and marina development being undertaken with UAE developer Eagle Hills. The government projects substantial tourism tax revenue once the hotels and resorts are operational.
Under the commercial terms, the state will receive standard TGST on hotel stays, food, shopping and services without the tax incentives sometimes granted under other investment schemes. Additional revenue is expected from a share of developer proceeds and property transaction fees.
Officials have repeatedly stated that the project will not add to public debt and that land ownership remains with the state. The development is planned over several phases on reclaimed land near Male.
Public debate continues over the scale of the investment, safeguards for property buyers and the long-term fiscal benefits.
