Author: Ahmed Naish

Tourist arrivals rose 17 percent in 2013

Tourist arrivals to the Maldives rose 17 percent in 2013 compared to the previous year, according to the latest Maldives Monetary Authority (MMA) monthly economic review.

“This was mainly due to the large increase in tourist arrivals from China, coupled with a slight growth in arrivals from Europe. Reflecting this, the total bednights and occupancy rate also recorded an increase during the year,” the MMA’s review stated.

The review did note, however, that the average duration of stay declined in 2013 compared with the year before.

Statistics from the tourism ministry show that 331,719 Chinese tourists visited the Maldives last year, which was a 44.5 percent increase from the previous year.

Chinese tourists accounted for 29.5 percent of all tourist arrivals in 2013.

The central bank also noted that real GDP (Gross Domestic Product) was expected to “accelerate to 4.5 percent in 2014, driven mainly by the tourism sector.”

In November 2013, the finance ministry revealed that the tourism industry’s GDP growth in 2012 declined by 0.1 percent following 15.8 percent growth in 2010 and 9.2 percent in 2011.

Despite negative growth in 2012, the finance ministry estimated that the industry would have expanded 5.5 percent in 2013 and forecast a growth rate of 5.2 percent for this year.

The average duration of stay has however fallen from 8.6 days in 2009 to 6.7 days in 2012 and 6.3 days in 2013.

According to the annual tourism yearbook published by the Tourism Ministry, the average occupancy rate of all tourist establishments in 2012 was 2.5 percent below the previous year at 70.6 percent.

The Maldivian economy is largely dependent on tourism, which accounted for 28 percent of GDP on average in the past five years, and generated 38 percent of government revenue in 2012.

Meanwhile, in the fisheries industry – the second largest domestic industry – “the volume of fish exports increased by 48 percent while the earnings on fish exports rose by 14 percent” between January and November 2013 compared to the same period in 2012.

“This was contributed by the increase in both the volume and earnings on fresh, chilled or frozen tuna,” the MMA report stated.

It added that fish purchases rose by 21 percent from January to September 2013 compared to the same period the previous year.

Inflation

The monthly review noted that the International Monetary Fund (IMF) commodity price index increased by two percent in monthly terms during December 2013.

“This increase was due to the rise in food, metal and petroleum prices in the review period. In annual terms the IMF commodity price index increased by one percent, contributed by the increase in petroleum prices which off set the price declines in food and metal.The price of crude oil increased by three percent in monthly terms during December 2013, while prices rose by six percent in annual terms,” the review stated.

The rate of inflation in the capital Malé meanwhile decreased to 3.1 percent in December 2013, the MMA revealed, which was “largely due to the fall in fish prices.”

“Similarly, the rate of inflation in Male’ decelerated  marginally in monthly terms during December 2013, which was also due to the fall in fish prices,” the review stated.

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MDP will empower island councils, says Nasheed

The opposition Maldivian Democratic Party’s (MDP) MPs will seek to amend the Decentralisation Act to empower local councils, former President Mohamed Nasheed has said.

Speaking at campaign events in Malé last night, Nasheed said the party’s aim was to award a nearby uninhabited island to each island council as a source of income.

“We want each council to conduct business transactions using the island [to generate income] for establishing sewerage and water systems, build roads or even construct a harbour or do work needed for the school – we want to find a way for you to undertake these efforts on your own,” he said.

Under the existing system of governance, Nasheed contended that the central government could not establish “even two sanitation systems” this year due to financial constraints and the current state of the economy.

Nasheed observed that sewerage, water,and electricity has been established in over 100 resort islands.

The MDP’s policy was facilitating guest house or mid-market tourism in inhabited islands in order to make infrastructure projects economically feasible, Nasheed explained.

Nasheed made the remarks at jagaha (campaign hub) opening ceremonies in the Henveiru ward for the MDP’s candidates for the Eydhafushi constituency in Baa atoll, and the Isdhoo constituency in Laamu atoll.

Speaking at the opening of the campaign hub Eydhafushi candidate, Hisaan Hussain, Nasheed said the law had to be amended for islands to benefit from its natural riches.

“We have to change the decentralisation law to give powers to island councils. We have to give the Eydhafushi council the discretion and the resources to reclaim land. One aim of our party is to empower island councils, generate income for island councils, and find ways for island councils to develop their islands,” he said.

Island councils should be able to initiate infrastructure projects such as establishing sewerage systems, Nasheed added.

In his speeches last night, Nasheed urged voters to compare the MDP’s candidates for Eydhafushi and Isdhoo with their opponents in the upcoming parliamentary elections.

Both Hisaan and Umar Razzaq were academically qualified and experienced in government administration and public service, Nasheed said.

Meanwhile, speaking at a function held last night to award the party’s ticket to candidates, Maldives Development Alliance (MDA) Leader Ahmed ‘Sun Travel’ Shiyam Mohamed reportedly said that voting for MDP candidates for parliament “could be a sin.”

Voters should not choose MDP candidates because of the party’s track record during its three years in government, the MP for Dhaalu Meedhoo said.

Praising the MDA’s candidates as “competent and educated,” Shiyam assured supporters that MDA MPs would not sell their votes or accept bribes.

“Bribing to obtain votes is haram. You must not do such a thing,” Shiyam said.

“Ruling a nation is like running a company. Developing a country is also putting the economy back on its feet. That is what we are working for,” the resort tycoon added.

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Adhaalath announces seven candidates for parliament

The Adhaalath Party (AP) announced seven candidates today for constituencies contested by the ruling ‘Progressive Coalition,’ bringing the number of the religious conservative party’s parliamentary candidates to 13 in total.

The candidates announced today were Ali Zahir for the Inguraidhoo constituency, Ibrahim Ahmed for the Madduvari constituency, incumbent MP Ibrahim Muttalib for the Fares-Maathoda constituency, Abdulla Ibrahim for the Kendhikolhudhoo constituency, Hassan Rasheed for the Kudahuvadhoo constituency, and Abdulla Haleem for the Isdhoo constituency.

The party also named the Fiqh Academy Vice President Dr Mohamed Iyaz Abdul Latheef for the Hulhuhenveiru constituency. Dr Iyaz last week sparked controversy as he endorsed the practice of female genital mutilation in an online forum.

AP Spokesperson Ali Zahir said at a press briefing today that the party decided to field candidates for the seven seats as no progress had been made in “unofficial” talks with the Progressive Party of Maldives (PPM) on the possibility of ceding five constituencies for AP candidates.

While the AP has not given up hope of reaching a compromise with the ruling party, Zahir said the party gave tickets to seven more candidates because the deadline for submitting candidacy papers was two days away.

“When they began primaries yesterday, we felt they no longer intend to go forward with us,” he said, adding however that the PPM had “signalled” an interest in further negotiations.

Zahir noted that the PPM conducted primaries yesterday for all five of the constituency requested by the AP.

While the AP “hopes this number [of candidates] will not become higher [than 13],” Zahir said it was possible that the party’s ticket could be awarded to more candidates in the coming days.

The three parties in the governing ‘Progressive Coalition’ reached an agreement last week to allocate the 85 parliamentary constituencies among the coalition partners, with 49 seats assigned for the PPM, 28 seats for the Jumhooree Party (JP), and eight seats for the Maldives Development Alliance.

Following its exclusion from the coalition’s parliamentary election plans, the AP began discussions separately with the three parties on the possibility of allocating constituencies to its candidates.

However, negotiations with the JP ended unsuccessfully after it refused to cede the Vaikaradhoo and Makunudhoo constituencies as requested by the AP.

Last week, the AP announced that it would be fielding candidates in six constituencies contested by the JP.

In addition to the five candidates announced on Wednesday – Anara Naeem for the Makunudhoo constituency in Haa Dhaal atoll, Aishath Haleela for the Vaikaradhoo constituency, Ahmed Zahir for the Komandoo constituency, Asadhulla Shafie for the Kaashidhoo constituency, and Hisham Ahmed for the Meedhoo constituency in Addu City – the AP later announced that State Minister for Home Affairs Abdulla Mohamed was awarded the party’s ticket for the Nolhivaram constituency.

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Supreme Court orders Majlis to expedite PG appointment

The Supreme Court issued an order Thursday night instructing “all relevant state institutions” to expedite the appointment of a new Prosecutor General (PG).

The apex court order (Dhivehi) noted that the constitution did not envision the post remaining vacant and stipulates that it must be filled within 30 days of a vacancy.

Referring to the “principle of necessity” and the importance of the criminal justice system continuing to function to ensure rule of law, the Supreme Court also ordered trial courts to accept and proceed with cases submitted by the Prosecutor General’s office.

Following the lapse of the 30-day period for the parliament to appoint a replacement for former PG Ahmed Muiz, the Criminal Court decided to halt all ongoing cases pending the appointment.

Muiz submitted his resignation on November 25 last year, shortly before parliament was set to debate a no-confidence motion against him.

In late January, Deputy PG Hussain Shameem wrote to the Supreme Court seeking its assistance in resolving the dispute.

Shameem told Minivan News at the time that there were more than 150 cases at the office that needed to be filed at the Criminal Court, including cases of suspects held in pre-trial detention.

“So what do they do now, it would not be fair to keep them in there until the parliament comes back to work from recess after three months and appoint a new PG,’’ Shameem said.

On December 10, President Abdulla Yameen nominated his nephew Maumoon Hameed to the post of Prosecutor General.

The nominee was forwarded to parliament’s Independent Institutions Committee for review.

The committee’s chair, MP Ahmed Sameer – who recently defected from the opposition Maldivian Democratic Party to the government-aligned Jumhooree Party – told newspaper Haveeru shortly after the Supreme Court issued its order that the vetting process was stalled due to lack of cooperation from political parties.

While a committee meeting scheduled to take place during the ongoing recess to interview the nominee was canceled upon request by pro-government MPs, a second attempt to hold the meeting was unsuccessful because MDP MPs opposed it.

“I am ready to hold the meeting even tonight if they request it,” the MP for Haa Alif Dhidhoo was quoted as saying.

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MDP launches parliamentary elections campaign

The opposition Maldivian Democratic Party (MDP) officially launched its parliamentary elections campaign at a rally in Malé last night.

Addressing supporters at the carnival area of the artificial beach, former President Mohamed Nasheed said the party was once again facing an election with “many new experiences” and “renewed courage”.

“The Maldivian Democratic Party has made a proposal to the Maldivian people. This party has brought hope of another way for the people – the hope that they could find housing, provide healthcare for their children, provide education for their children, travel easily from one place to another, and [the hope] that the Maldivian people will have social security,” he said.

The party’s aim was to fulfil the hopes of the Maldivian people, he added, pledging to “take you to the ‘Other Maldives.'”

“It is going to be 100 days since the Maldivian government changed the way the Supreme Court wanted. The people of our country can see very clearly how things transpired during the past 100 days. They said they will create 90,000-odd jobs but our people were watching when posts were divided among family members,” Nasheed said.

The Progressive Party of Maldives-led (PPM) coalition government has not formulated policies or launched any projects to spur job creation, Nasheed claimed.

“Building flats has stalled and they’re saying loudly that there’s no money for land reclamation,” he continued. “We are seeing the [public] transport system come to a halt. Going from one island to another for medical treatment or to visit relatives has once again become difficult.”

The MDP government’s policy of shifting schools to single sessions, which Nasheed contended was responsible for year-on-year improvements in the O’ Level pass rate, has been discontinued, he added.

Moreover, infrastructure projects in the atolls, such as construction of harbours and provision of electricity and waste management services, have also ceased, Nasheed said.

Nasheed argued that development projects remained stalled because senior government officials were working in their self-interest.

During last year’s presidential campaign, Nasheed had maintained that a power sharing arrangement to form a coalition government was incompatible with the presidential system envisioned in the Maldivian government.

Nasheed went on to call on the public to “vote for the scale [MDP logo]”.

“Vote for the scale to reform the judiciary. We are asking the Maldivian people to vote for the scale to not let the powers of the state be merged. We are asking the Maldivian people to vote for the scale to guarantee social security,” he said.

The former president expressed confidence that the MDP would secure a “comfortable majority” in the upcoming parliamentary polls scheduled for March 22. The party is contesting all 85 constituencies.

At last night’s rally, 84 of the party’s candidates for the People’s Majlis were brought on stage to read out a declaration pledging loyalty to the party.

The MDP’s slogan for this year’s campaign is “Vote for the scale for separation of powers.”

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Elections Commission dissolves eight parties

The Elections Commission (EC) dissolved eight parties on Thursday for failing to reach the mandatory minimum of 3,000 registered members.

The eight parties were the People’s Alliance (PA), Dhivehi Qaumee Party (DQP), Islamic Democratic Party (IDP), the Maldivian Labour Party, the Social Liberal Party, the People’s Party, the Maldivian National Congress (MNC), and the Dhivehi Rayyithunge Social Democratic Party.

The EC explained in a press statement that the eight parties were removed from the political parties registry after providing a three-month period to increase party membership.

“While most of these parties are not active at all, the Elections Commission made a public announcement in 2013 to find out where their offices were located as letters and other documents sent to the parties were not being delivered,” the EC stated.

“We also note that these parties to whom funds have to be released every year from the state budget have not been regularly submitting audit reports to the Elections Commission.”

As inactive parties were provided large amounts of state funding, the EC noted that dissolving the parties would alleviate the strain on the state budget.

In December 2012, parliament passed the Political Parties Act with a clause requiring a minimum of 10,000 members for registration.

The Supreme Court however struck down the article in September 2013 and the EC decided that the minimum party membership would fall to 3,000 as stipulated in the previous political party regulation.

The commission decided to dissolve the eight inactive parties last month and asked the parties to inform the EC of any debts or assets before February 7.

“We sent a letter to parties with membership below 10,000 to increase their members. But these parties are not being dissolved because they do not have 10,000. It is because they do not have the 3,000 member minimum,” EC Vice President Ahmed Fayaz explained at the time.

The councils of the Maldives Reform Movement (MRM) and the Gaumee Iththihaad Party (GIP) meanwhile voted to voluntarily disband in December.

With the dissolution of the eight parties, the Maldives currently has six active political parties. They are ruling Progressive Party of the Maldives (PPM) and its coalition partners – the Jumhooree Party (JP), the Maldives Development Alliance (MDA), and the Adhaalath Party. The remaining parties are the Dhivehi Rayyithunge Party (DRP) and the main opposition Maldivian Democratic Party (MDP).

Among the six, only MDA has membership below 10,000. According to the EC website, MDA currently has 7,537 members.

President Abdulla Yameen formed the PA in 2008 following a disagreement with half-brother and then-President Maumoon Abdul Gayoom. Yameen resigned from the party and joined the newly-formed PPM in 2011.

Gayoom’s Attorney General Hassan Saeed set up the DQP in September 2008 ahead of his presidential bid. After unconditionally backing MDP candidate Mohamed Nasheed in the run-off against incumbent Gayoom in the 2008 presidential election, the party left the MDP-led coalition and became a vocal opponent of the Nasheed administration.

The party backed Yameen during the second round of the 2013 presidential polls after its coalition partner JP failed to make the run-off.

Current Home Minister Umar Naseer set up the IDP in 2005 and ran for president in 2008. He quit the party to join the DRP in 2010.

PPM MP ‘Redwave’ Ahmed Saleem established the Maldivian Labour Party in 2008 while the Social Liberal Party was a splinter from the MDP – founded by former MP and presidential candidate, Ibrahim ‘Ibra’ Ismail.

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Adhaalath announces five Majlis candidates for JP reserved constituencies

The religious conservative Adhaalath Party (AP) has announced five candidates for the upcoming parliamentary elections in constituencies reserved by the government coalition for the Jumhooree Party (JP).

Unveiling the candidates at a press conference today, AP Spokesperson Sheikh Ali Zahir revealed that discussions were ongoing with the Progressive Party of Maldives (PPM) on allocating “three or four constituencies” for AP candidates.

“Adhaalath Party worked from the start to try and field candidates together [with the ruling coalition] or without conflicts. At the final stage of these efforts, we are still really awaiting an answer from PPM,” he said.

While the parties were not engaged in “official” discussions, the AP has asked the ruling party to cede five constituencies for its candidates, Zahir added.

“They have promised to give us constituencies out of [the requested five seats]. PPM has even revealed that through the media. So we hope that it will be concluded as soon as possible because there is very little time left,” he said, referring to the February 11 deadline to submit candidacy papers to the Elections Commission.

Parliamentary elections are scheduled to take place on March 22.

“They said they might not be able to give all [five] constituencies. But they will determine from among [the five seats]. We have said we can work together if we get three or four seats,” he said.

The three parties in the governing ‘Progressive Coalition’ reached an agreement last week to allocate constituencies among the coalition partners, with 49 seats assigned for the PPM, 28 seats for the JP, and eight seats for the Maldives Development Alliance.

Following its exclusion from the coalition’s parliamentary election plans, the AP began discussions separately with the three parties on the possibility of allocating constituencies to its candidates.

However, negotiations with the JP ended unsuccessfully after it refused to cede the Vaikaradhoo and Makunudhoo constituencies as requested by the AP.

JP Leader Gasim Ibrahim told the press that the AP President Sheikh Imran Abdulla had refused to accept an offer of four constituencies, including three of five constituencies requested by the party.

Following the breakdown in talks, the AP announced that it would be fielding candidates in the 28 constituencies reserved for JP candidates.

Compromise

While 35 AP members have submitted forms to contest the parliamentary elections on the party’s ticket, Zahir said today that the party was considering reducing the number of its candidates.

The AP was willing to compromise with the coalition if the parties agreed to cede constituencies where Adhaalath’s support was strong, Zahir said.

“If we contest a lot of seats, it is likely that it will adversely affect the government coalition and they could lose a lot of seats. As this government was brought [to power] with our support as well, we do not want that to happen,” he said.

However, the AP began announcing its candidates today due to the lack of progress so far, he added.

“Even if we go together or through a coalition, the principle we believe is that we will contest in constituencies where we have supporters and a big chance of winning. Winning seats using the support of others is not a philosophy we believe in,” he said.

The five AP candidates announced today were Anara Naeem for the Makunudhoo constituency in Haa Dhaal atoll, Aishath Haleela for the Vaikaradhoo constituency, Ahmed Zahir for the Komandoo constituency, Asadhulla Shafie for the Kaashidhoo constituency, and Hisham Ahmed for the Meedhoo constituency in Addu City.

While candidates from JP will be contesting all five constituencies on behalf of the Progressive Coalition, Zahir said that the AP had complete confidence of securing the seats.

Stressing the competence and academic qualifications of the AP’s candidates, Zahir said the party’s aim was to address public dissatisfaction with the People’s Majlis and ensure that MPs have the respect of the public.

Zahir criticised other parties for “forcing” candidates of questionable character and “low behaviour” on the public.

The AP candidates were selected without a primary by the party’s consultation council, which Zahir said was in the process of selecting candidates for a number of other constituencies.

Zahir also announced that the AP would be contesting the Nolhivaram constituency with a candidate to be finalised at a later date.

Meanwhile, State Minister for Home Affairs Abdulla Mohamed – vice president of the ‘Civil Alliance’ of local NGOs – signed for the AP today. Abdulla had previously expressed interest in contesting the Nolhivaram seat.

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PPM MP Mahloof proposes public referendum on death penalty

Progressive Party of Maldives (PPM) MP Ahmed Mahloof has proposed conducting a public referendum on the death penalty to allow voters to decide whether to restore capital punishment.

Speaking at a press conference at the PPM office this morning, the MP for Galolhu South said he was planning to submit a resolution to parliament on conducting the referendum simultaneously with the parliamentary elections scheduled for March 22.

Mahloof accused all three branches of the state of “making excuses” to avoid enforcing the death penalty, claiming that 99 percent of the public supported its reintroduction.

“When this issue comes to the People’s Majlis, they say very easily that this has been determined by religion so we don’t have to make a decision here. When it goes to the judiciary, they say the People’s Majlis has to make a decision on implementing death sentences,” the PPM spokesperson said.

“When the home minister issues an order to implement [death sentences], the government is saying today that we have to make a decision at the cabinet.”

Referring to the recent stabbing of MP Alhan Fahmy at a restaurant, Mahloof contended that lack of enforcement had emboldened criminals “to the point where people in senior posts of the state are attacked in open spaces.”

“So they will not hesitate to [attack] an ordinary citizen. This is a very serious matter,” he said.

Mahloof added that his purpose was to “build pressure” on the government to enforce the death penalty.

While presidential candidates spoke in favour of the death penalty during last year’s campaign, Mahloof observed that implementation efforts remained “stalled”.

The government would be forced to enforce capital punishment if the issue was decided in a public referendum, he added.

Mahloof also said that he was seeking signatures from MPs to hold an extraordinary sitting of parliament during the ongoing recess to debate the resolution. A sitting can be held during recess upon request by 26 MPs.

The ruling party MP said he met Elections Commission Vice President Ahmed Fayaz yesterday and was assured that the commission would discuss the issue of the referendum.

Article 70 of the constitution states that the lawmaking powers of the People’s Majlis include “the holding of public referendums on issues of public importance.”

Mahloof’s resolution – shared on social media today – states that seeking public opinion on the death penalty would alleviate international pressure and rebut those who claim Maldivians did not favour it.

“Despite the death penalty being prescribed in Islam, sentences are not implemented because of foreign and domestic pressure,” he tweeted.

In January, Home Minister Umar Naseer issued an order to the Maldives Correctional Service to begin preparations for implementation of death sentences by lethal injection.

The order prompted Amnesty International to call on the government to halt any plans to end the current moratorium on the death penalty, describing such a move as “a retrograde step and a serious setback to human rights in the country.”

President Abdulla Yameen – on a state visit to Sri Lanka at the time of Naseer’s announcement – meanwhile told the press that the home minister’s order was not discussed at cabinet and promised “broad discussions” on the issue.

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Parliament approves government’s revenue raising measures

Parliament today passed three bills submitted by the government to raise additional revenue anticipated in the 2014 state budget.

The revenue raising measures approved today include hiking the Tourism Goods and Services Tax (T-GST) from eight to 12 percent in November, reintroducing the discontinued US$8 bed tax starting this month, and requiring resort lease extension payments to be made within two years.

While the two amendments to the Tourism Act were voted through 38-18, the amendment to the Goods and Services Tax Act was approved 39-18. The changes will take effect once signed into law by the president.

The passage of the amendment bills was greeted with applause from government-aligned MPs.

MPs of the opposition Maldivian Democratic Party (MDP) voted against all three pieces of government-sponsored legislation, contending that the tax hikes would adversely affect the tourism industry.

“Numbers will not match”

The government had initially proposed collecting resort lease extension fees within three months, collecting bed tax throughout this year, and raising T-GST in July.

However, the parliamentary subcommittee that reviewed the legislation consulted the Maldives Association of Tourism Industry (MATI) last week and recommended revising the government’s proposals.

Representatives from MATI opposed continuation of the bed tax alongside the T-GST increase.

Appearing before the subcommittee, MATI Secretary General Ahmed Nazeer also questioned the practicality of collecting resort lease extension fees upfront.

Only 17 out of more than 100 resorts offered the opportunity by the administration of former President Mohamed Nasheed to extend leases with a lump sum payment were able to do so, Nazeer said.

Resort owners had amended their lease agreements to pay extension fees in installments during Dr Mohamed Waheed Hassan’s administration, Nazeer noted, and revising agreements for a third time could present legal challenges.

Government-aligned Jumhooree Party Leader Gasim Ibrahim – who chaired the subcommittee – meanwhile told local media following the revisions that the bed tax and T-GST hike would overlap in November, after which the former would be discontinued.

The decision was made to compensate for the loss of income from the bed tax in January, the business magnate and resort owner explained.

Finance Minister Abdulla Jihad told local media last month that the Majlis’s failure to extend the bed tax would result in a revenue shortfall of MVR100 million (US$6 million) a month.

Moreover, in the wake of the subcommittee’s revisions, Jihad warned that the projected MVR 3.4 billion (US$224 million) in additional revenue – which accounts for 18 percent of the record MVR17.95 billion budget passed for this year – could not be realised in full due to the changes.

Following remarks by Progressive Party of Maldives MP Moosa Zameer at the subcommittee last week – suggesting that pro-government MPs supported abolishing the bed tax in favour of increasing T-GST – Jihad told Minivan News that the government’s stance had not changed.

“It has not changed. And if the government does not go on with the bed tax, the numbers will not match in the budget,” he said.

Meanwhile, parliament yesterday accepted for review amendments submitted by the government to revise import duties.

In addition to raising tourism taxes and custom duties, other revenue raising measures proposed by the government include raising airport departure charge for foreign passengers from US$18 to US$25, leasing 12 islands for resort development, and introducing GST for telecommunication services.

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