President Abdulla Yameen has ratified revisions to the Maldives Tourism Act and the Goods and Services Act today.
The amendments were passed at an extraordinary sitting of the People’s Majlis and will allow the government to hike Tourism Goods and Services Tax (T-GST) from 8 to 12 percent starting in November this year.
The US$8 bed tax will restart in February and will continue until November. The government will also be able to collect resort lease extension fees in a lump sum within two years.
The Finance Ministry had initially estimated that new revenue-raising measures would bring in MVR3.4 billion (US$224 million).
However, amendments were not passed as per the ministry’s proposals, and Finance Minister Abdulla Jihad has said “numbers will not match” in the budget.
Additional revenue raising measures include levying a 6 percent tax on telecommunications, increasing airport departure fees to US$25, leasing out 12 islands for resort development, and revising import duties.
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leasing of additional resorts does not need to get parliament adornment and it is within the tourism ministry and President .
But leasing hundreds of Islands is not going to bring any good to the country but rather need to find a way to get build the Islands that are being leased now.
Every single Island that can bring to operation will generate much more money to the Government than ten money that they can get as an acquisition cost .
Jihad need to work on maths and then prepare the budget .