“Tariff rationalisation a positive to economy”: Care Ratings Maldives

The new tariff structure that came into force on January 1, 2012 will have a positive impact on the domestic economy, predicts an economic review report for December released by Care Ratings Maldives this week.

Care Ratings Maldives became the first credit ratings agency recognised by the Capital Markets Development Authority (CMDA) in May 2011 to carry out ratings of debt instruments and facilities.

“The new export-import tariff structure may be viewed as a pragmatic policy, designed to diminish structural fragilities of the Maldivian economy,” the report found.

Amendments to the Export-Import Act proposed by the government as part of its economic reform package was passed by Parliament on November 21 and ratified by the President shortly thereafter. Import duties were subsequently reduced and scrapped entirely for a range of items.

Under the new tariff structure, the report observes, “products such as metals, minerals, chemical products and manufactured goods, which together constitute about 57 percent of total [imports], have by and large been awarded with a reduction in tariffs.”

However it noted that tariffs or import duties for certain items have been significantly hiked, such as tariffs for tobacco from 50 to 150 percent and non-biodegradable plastic bags from 200 to 400 percent.

The report also noted that the contribution of import duties to government revenue has been declining, from 73 percent in 2008 to 46 percent in the first ten months of 2011.

Meanwhile the implementation of new taxes, such as the Goods and Service Tax (GST) and Business Profit Tax (BPT), is expected to account for a higher portion of government income.

“It may be noted that the Maldivian government is making a conscious attempt at augmenting revenues from direct tax sources, rather than indirect taxes,” the report stated.

The report predicts that “the largest beneficiary of this new tariff structure” could be the secondary sector as tariffs have been lowered significantly (between 10 percent and 100 percent reduction) for inputs of the manufacturing and construction industries.

As a result, the report forecast that the contribution of both sectors to the GDP could reach pre-recession levels of five and 11 percent, respectively.

“The reduction in import tariff would impact the construction sector by freeing resources for projects under implementation and reducing their costs during gestation periods,” the report explains, adding that the construct boom “could boost the tertiary sector of the economy as well.”

Retailers meanwhile expect prices of foodstuff to fall in the wake of the import duty waiver. Items with GST rate set at zero percent for which import duties have now been scrapped include rice, flour, sugar, salt, milk, cooking oil, eggs, tea, fish products, onions, potatoes, fruits and vegetables, baby food, diapers, gas, diesel and petrol.

While the State Trading Organisation (STO) announced a reduction in diesel and petrol prices, Maldivian airline reduced airfares for domestic flights by Rf50 in line with the reduction in import duty for jet fuel.

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High Court overturns Criminal Court suspension of MP Imthiyaz

The High Court yesterday ruled that the suspension of lawyer and MP Imthiyaz Fahmy for six months by Criminal Court Chief Judge Abdulla Mohamed for alleged contempt of court in February 2010 was unlawful.

The ruling Maldivian Democratic Party (MDP) MP for Maafanu North had appealed the decision in May 2010.

The three-judge panel of the High Court found that the suspension violated principles of procedural fairness and due process for declaring persons in contempt of court.

The judges noted that while the suspension was reported in local media the following day, Imthiyaz was not officially informed of the sanction until March 9, 2010.

Existing regulations however required that contempt of court must be declared either immediately during proceedings or established in a separate trial after offering the opportunity for the contemnor to answer the charge of contempt.

Speaking to Minivan News today, Imthiyaz observed that Chief Judge Abdulla Mohamed faced multiple allegations of misconduct and political bias.

“Whatever do you expect again from a judge whom in fact the Judicial Service Commission (JSC) has decided to take action against for his ethical misconduct?” he asked.

“This judge has a history of such issues. And never have I heard of a judge other than this judge who was in contempt of court by calling his own court ‘a political campaign camp’. One fatal flaw in the judiciary is that judges like him still sit in court.”

In 2005, then Attorney General Dr Hassan Saeed forwarded to the President’s Office concerns about the conduct of Abdulla Mohamed after he allegedly requested that an underage victim of sexual abuse reenact her abuse for the court.

In 2009 following the election of the current government, those documents were sent to the JSC, which was requested to launch an investigation.

“A good judge would always work towards priding himself on his ability to make good quality decisions but Judge Abdulla Mohamed seems to pride himself on something else,” Imthiyaz contended.

“In fact, if anything goes well in his court, it happens quite by chance.  And this is inevitable since the independence of judges was not well served by the vetting process that took place in August 2010 by the JSC. There are in fact criminal convicts sitting in courts as judges. The amended constitution does not allow for kangaroo courts like this.”

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Religious scholars symposium concludes with consensus on contentious issues

A first-ever symposium for local religious scholars organised by the Ministry of Islamic Affairs concluded last night with participants reaching consensus on a number of longstanding religious disputes and points of contention in Maldivian society.

Among the contentious issues deliberated and agreed upon by the 80 scholars were reciting Qunooth (invocation) during dawn prayer, the exact time of Friday prayer (12.35pm), the number of rak’ah for Tharavees prayers during Ramadan and reciting Bismillah aloud during prayers.

The scholars also opposed authorising Israeli national airline El Al to operate in the Maldives and decided to ask the authorities to remove controversial SAARC monuments in Addu City as they are considered an offense to Islam.

The religious scholars also decided to back Islamic Minister Dr Abdul Majeed Abdul Bari’s request to parliament’s National Security Committee that the airline not be allowed into the Maldives.

On the issue of Qunooth – an invocation offered in times of adversity – a majority of scholars concurred that the practice was not a bid’ah (heretical innovation). Sheikh Ibrahim Fareed Ahmed of the Islamic Foundation of Maldives (IFM) and Sheikh Ilyas Jamal however insisted that the invocation was an innovation when the issue was put to a vote.

Moreover, a majority of scholars could not agree that praying in front of pillars in mosques was an innovation.

On the optional Tharavees prayers during Ramadan, the scholars agreed that the number of rak’ah could exceed 20 or end at a lower number.

The decisions made during the symposium also included forming of an association of religious scholars to raise awareness among the public and assist the Islamic Ministry in “responding to those who deny or cast doubt on the Sunnah.”

Seven papers were presented by prominent scholars at the two-day symposium that took place at the Islamic Centre while participants were divided into three discussion groups. In addition to Islamic Minister Dr Bari, the papers were presented by MP Dr Afrashim Ali of the Progressive Party of Maldives (PPM), Sheikh Mohamed Giyas, Sheikh Abubakur Ibrahim of IFM, State Minister for Islamic Affairs Sheikh Hussein Rasheed Ahmed, Sheikh Nasrulla Musthafa and Sheikh Ahmed Saleem Hussein.

The papers focused on points of conflict and disagreement among scholars over issues of ambiguity.

Speaking to press at the conclusion of the symposium last night, Dr Bari said the event was a success and noted the absence of serious disputes among Maldivian scholars.

Dr Bari observed that disputes were more common in the public than among religious scholars.

As a measure to reduce misunderstanding among the public, said Dr Bari, participants at the symposium agreed to issue fatwas only after reaching consensus among all scholars.

Following the success of the symposium, Dr Bari added that the Islamic Ministry was considering making the gathering an annual event.

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MDP wins council by-elections

Candidates of the Maldivian Democratic Party (MDP) won Saturday’s by-elections for two vacant seats of the Shaviyani atoll council and one seat of the Alif Alif Mathiveri island council.

According to provisional results announced by the Elections Commission (EC) last night, MDP candidates Abdulla Athif and Firaq Ibrahim won the two atoll council seats of Shaviyani Milandhoo constituency with 1,038 votes and 977 votes respectively.

Both Athif and Firaq were elected to the atoll council in the February 2011 elections but were dismissed by a resolution for ostensibly not attending seven consecutive council meetings.

In the Milandhoo constituency, Progressive Party of Maldives (PPM) candidate Moosa Hussein Fulhu received 705 votes while Independent candidate Ahmed Rasheed got 619 votes.

Meanwhile in Alif Alif Mathiveri, MDP candidate Ismail Athif placed first with 253 votes followed by opposition Dhivehi Rayyithunge Party (DRP) candidate Moosa Hassan with 200 v0tes.

The island council seat had previously been held by the DRP. Yesterday’s win assures a majority of the five-member council to the ruling party.

The constituency of Alif Alif Mathiveri is represented in parliament by DRP MP Hussein Mohamed while the Shaviyani Milandhoo constituency is represented by MDP MP Ali Riza.

In separate statements yesterday, MDP President Dr Ibrahim Didi and Acting Chairperson ‘Reeko’ Moosa Manik congratulated the by-election winners and urged the councillors to “work as closely as possible with the government” to serve the public.

Official results are expected to be announced by the EC on Tuesday.

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2012 budget passed with opposition MPs’ amendments

A state budget of Rf14.6 billion (US$946.8 million) for 2012 was passed by parliament today with Rf3.5 million (US$226,977) added through amendments proposed by opposition MPs.

The budget was approved with 70 votes in favour, two against and one abstention.

Among the amendments passed today included proposals by the opposition Dhivehi Rayyithunge Party (DRP) to shift Rf300 million (US$19 million) from other items to local councils, increase funds for political parties from Rf11 million (US$713,000) to Rf14.5 million (US$940,337) and raise state benefits to the elderly from Rf2,000 (US$130) to Rf2,300 (US$148) to adjust for inflation.

The additional spending on political parties was proposed by Kelaa MP Dr Abdulla Mausoom in reference to the regulation on political parties, which stipulates that 0.01 percent of the state budget must be allocated for party finance.

An amendment proposed by Fares-Maathoda MP Ibrahim Muttalib to prevent privatisation of the Maldives Post Limited (MPL), State Electricity Company (STELCO), Island Aviation and the Housing Development Corporation (HDC) was passed after Speaker Abdulla Shahid cast the tie-breaking vote.

Of the five public companies proposed by the government, Muttalib’s amendment stated that the government could privatise only Maldives In-flight Catering (MIC).

A total of Rf750 million (US$49 million) was projected as revenue from privatising the state-owned enterprises.

Seven amendments proposed yesterday by Jumhooree Party Leader and Maamigili MP Gasim Ibrahim to scrap the privatisation plans on the grounds that it violated the Public Finance Act were not put for a vote after parliament’s newly-appointed Counselor-General Fathmath Filza advised that the government’s proposals were not unlawful.

Other amendments included proposals for the Ministry of Finance to provide detailed information of development programmes including selected islands, funding plans and schedules before next year’s budget debate commences.

Meanwhile over 50 new development projects were added by the budget committee, which also increased funding for independent institutions by Rf192 million (US$12.4 million) and included Rf100 million (US$6 million) as fisheries subsidies.

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Pillay controversy a missed opportunity to demonstrate nobility of Sharia: President

The Maldives missed an opportunity to demonstrate “the nobility of Islamic Sharia” to the world by reacting in “a Jihadi spirit” to controversial statements made by visiting UN human rights chief last month, President Mohamed Nasheed said at a rally Friday night.

A call for a moratorium and public debate on flogging as a punishment for fornication by UN High Commissioner for Human Rights Navi Pillay in an address to parliament on November 24 was unequivocally condemned by the Islamic Ministry, religious groups and political parties as an unconstitutional challenge to a Quranic precept.

“That the punishments and rulings of Islamic Sharia are not inhumane is very clear to us,” Nasheed said. “We have the opportunity to show the whole world how noble and civilised Sharia is. That is because we are the only Islamic nation with a democratically-elected government.”

“Wasting that opportunity in a Jihadi spirit” with the claim of “defending Islam” was unacceptable, Nasheed told supporters at the Maldivian Democratic Party (MDP) rally at Dharubaaruge, which saw the launching of a ‘Plus One’ campaign to double party membership ahead of the 2013 presidential election.

“Opposition parties will always attack us by using religion as a weapon,” he said. “[But] believe that this country is the only Islamic nation where Islamic Sharia has been practiced uninterrupted for 700 years.”

Islamic chief justices and principles of Sharia law had “a sacred place” in the Maldives’ long history, Nasheed observed, which “will not be shaken.”

“Maldivians are not a people who will allow the slightest harm to Islam,” he said. “We know how civilised the religion of Islam is.”

MDP understood that Islam “brought the world out of jahiliyya [ignorance] onto the path of civilisation,” he continued, adding that the party was committed to protecting the culture and traditions of the country.

In the past three years, he noted, the government spent Rf1.2 billion on “the protection of Islamic faith” (page 200 of the MDP manifesto), including the construction of 40 new mosques across the country.

Nasheed said he had been writing about the decay of the Gemmiskiy in Fuvahmulah, an ancient coral stone mosque, since 1990.

Meanwhile in a press conference on Thursday, seven opposition parties announced it would be joining the coalition of NGOs for a nationwide mass protest planned for December 23 “to protect Islam” against the MDP government’s alleged “anti-Islamic agenda.”

Speaking at the Friday night rally, MDP Vice-President and MP for Feydhoo, Alhan Fahmy, strongly criticised opposition parties and religious groups for objecting to the Pakistani SAARC monument, which contained pagan symbols of the Indus Valley civilisation and a bust of the country’s founder Mohamed Ali Jinah topped by the Islamic crescent symbol.

“The time when people worshiped idols, when people worshiped people and the public worshiped rulers in this country is over and done with,” he said.

Alhan accused religious groups and scholars of the Adhaalath Party for employing “religion as a shield” for political purposes.

“Instead of bringing people from Egypt for Ramadan revival programmes, we gave the opportunity for Maldivian scholars to speak and deliver sermons,” he said, in contrast to the former regime “jailing them and shaving their beards with chili sauce.”

Alhan also argued that accusing senior officials of the MDP government as well as the party’s members of kufr (disbelief) went against Islamic principles in a Muslim society.

He urged the Adhaalath Party to cease “sowing discord” with accusations against fellow Muslims and suggested the religious conservative party “talk about something else if you want to come to power.”

President Nasheed meanwhile suggested that “the people today are too aware and enlightened” to believe the charges laid against the government.

“We know what the people of the Maldives want. We don’t have to watch TV stations to find it out,” he said, referring to the opposition-aligned privately-owned broadcasters DhiTV and VTV.

Nasheed observed that the MDP received 53 percent of the total votes cast in the by-elections for vacant council seats in Alif Alif Himandhoo, Faafu Bilehdhoo and Gnaviyani Fuvahmulah on November 19.

“In 2013, I have not the slightest doubt in my mind that we will take 60 percent of the vote in the first round,” he asserted, claiming that there was “no other party in the country yet” that could meaningfully compete with the MDP.

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“Our faith should not be so easily shaken”: President Nasheed

Maldivians should have the self-belief and resolve not to have “our faith shaken by listening to statements or opinions expressed by others”, President Mohamed Nasheed said at a function to confer national awards of honour and recognition on Sunday night.

Nasheed’s remarks followed controversy in the wake of statements made by visiting UN High Commissioner for Human Rights, Navi Pillay, who called for a moratorium and public debate on flogging as a punishment for fornication. Pillay’s statements were widely condemned as an unconstitutional challenge to a Quranic injunction and prompted protests outside the UN building.

“To build a nation, we should all have the courage, the patience and the willingness to exercise our minds to its deepest and broadest extent,” Nasheed said.

Sunday night’s winners of the national awards for honour and recognition were “perfect examples of the strength of one’s faith,” he added.

Recipients of the national award for recognition included Professor Hassan Ugail, a mathematician and computer scientist at the School of Informatics, University of Bradford.

“We should have the courage to be able to listen to and digest what people tell us, what we hear and what we see,” said Nasheed, adding that Maldivians should not be “so easily swayed and conned”.

“For that not to happen, we have to foster in our hearts a particular kind of national spirit and passion,” he continued. “This national spirit is not going to come into being by not listening, not talking and hiding things, [but] by clearly and transparently saying what we think in our hearts, discussing its merits among us and making decisions based on [those debates].”

To achieve nationhood and progress, said Nasheed, a country needs more than development of its infrastructure.

“It is the individual who has to be developed -development is something that happens to a person, a change that happens with the individual,” he said.

Recognising outstanding achievements by individuals and holding them up as role models to the public was a duty of the state, Nasheed said.

He expressed particular gratitude to former Attorney General and human rights lawyer Husnu Suood for legal representation and advocacy on behalf of a number of citizens “during a very dark time” and made note of Professor Ugail’s academic achievements.

Majlis

Meanwhile in parliament yesterday, MP Dr Afrashim Ali, a religious scholar and member of the Progressive Party of Maldives’ (PPM) interim council, proposed a motion without notice to debate Pillay’s address on Thursday as “sufficient measures have not been taken by any state institution regarding this case” and if debate was allowed on any tenet of Islam “tomorrow it is likely that people will question worshiping Almighty God and open the space for discussion on it”.

The floor was opened for a debate on the motion with 41 MPs voting in favour. Maldivian Democratic Party (MDP) MP Ibrahim Rasheed cast the only dissenting vote.

Afrashim noted that under article 27 of the constitution the right to free expression must be exercised “in a manner that is not contrary to any tenet of Islam.”

It was therefore “an indisputable truth that neither Pillay nor anyone else should be given permission to speak or express views contrary to the tenets of Islam within the territory of the Maldives,” he said.

Afrashim argued that Pillay’s remarks constituted a crime under the Religious Unity Act of 1994 and carried a prison term of between two to five years.

Addressing criticism for his role in Thursday’s event, Shahid informed MPs that he did not know of the contents of Pillay’s address in advance and that Dhivehi translations distributed to MPs after the speech were prepared by the UN.

Several MPs however called on the Speaker to issue a public apology.

Afrashim insisted that parliament should have made a public statement condemning the remarks and advised MPs that it was “in the best interest of the nation at this point” to formulate laws banning irreligious speech.

MDP MP ‘Colonel’ Mohamed Nasheed reproached Afrashim for “calling other MPs kafirs (unbelievers)” and “sowing discord for political purposes.”

MPs of the ruling party met the Speaker to express concern after Pillay’s speech, Colonel said, contending that MPs in attendance should not be blamed for her words.

MDP has condemned the remarks and “would not allow a religion other than Islam on this soil,” he said.

Dhivehi Rayyithunge Party (DRP) Leader Ahmed Thasmeen Ali meanwhile joined the chorus of condemnation and concurred that her statements were “unacceptable” and “in violation of the constitution.”

“Yesterday they put up idols, today they talked about religious punishments, tomorrow we’ll be talking about homosexuality and gay marriage the next day. These are things that could happen in a series,” warned Fares-Maathoda MP Ibrahim Muttalib, who recently signed with the Adhaalath Party.

MP Gasim Ibrahim, leader of the Jumhooree Party, claimed Pillay’s remarks were part of the government’s serial efforts to introduce other religions, “build idol temples and weaken our Islamic faith.”

Gasim added that he would have put a stop to Pillay’s address if he had attended Thursday’s function in parliament.

PPM Spokesperson MP Ahmed Mahlouf said the MDP government’s anti-Islamic agenda was evident through such actions as authorising restaurants to serve expatriates during Ramadan, allowing the sale of alcohol at the airport departure terminal and proposing to make Islam and Dhivehi optional subjects at A’ Levels.

“A Muslim said in public for the time in the Maldives that he was not a Muslim,” said Mahlouf. “We believe these things are connected to President Nasheed because he hasn’t come out and directly said anything about it.”

He urged the public to join the protest planned by the NGO coalition for December 23 and “directly overthrow this government.”

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State budget for 2012 submitted to parliament

The state budget for 2012 was submitted to parliament today by Finance Minister Ahmed Inaz with a projected fiscal deficit of 9.7 percent, down from 21 percent in 2009, 16.1 percent in 2010 and 10.1 percent in 2011.

In his introductory statement, Inaz said the programme-based budget was prepared with special focus on producing results and maintaining recurrent expenditure in line with income.

“The programmes included in the budget are based on the Strategic Action Plan,” he explained. “Special attention has been given in the budget programmes to provide adequate and quality service to the public. The government’s aim is to match up the figures in the budget with development plans and ensure that all state expenditure is made to achieve a stated target.”

Steering committees have been formed to oversee the 31 programmes in the budget, Inaz continued, urging MPs to evaluate the progress of implementation over the course of the year.

Total expenditure out of the 2012 state budget is estimated to be Rf14.6 billion (US$946.8 million), representing an 18 percent increase from 2011.

With the enactment of taxation legislation under the government’s economic reform package, revenue is projected to increase 11 percent from 2011 to Rf10.8 billion (US$700 million) next year with tax revenue expected to account for Rf7.3 billion (US$473 million).

The resulting fiscal deficit is to be plugged with Rf1.9 billion (US$123 million) in foreign loan assistance, Rf2 billion (US$129.8 million) forecast as budget support, and Rf750 million (US$48.6 million) from privatisation proceeds and sale of treasury bills and bonds in the domestic market.

Among the programmes that account for the increase in government spending, said Inaz, include a universal health insurance scheme and construction of housing units with foreign loan assistance.

Inaz noted that Rf2.1 billion (US$136 million) was allocated for education – which includes the ‘Hunaru’ training programme, student loan schemes and projects for improving school infrastructure – and Rf100 million (US$6.8 million) as capital investment for health corporations along with Rf20 million (US$1.2 million) for local councils to strengthen the public health sector.

While 44 percent of recurrent expenditure will be spent on salaries and allowances for state employees, Inaz said the wage bill has been reduced as a result of the voluntary redundancy programme conducted this year and the transfer of civil servants to corporatised entities.

State benefits and subsidies meanwhile account for 30 percent of recurrent expenditure followed by 17 percent (Rf120 million or US$7.7 million) on administrative costs.

The government is currently undertaking a review with World Bank assistance to ensure that subsidies are “means-tested and targeted” in 2012, Inaz revealed.

Inaz observed that unlike previous years, state revenue in 2012 will cover recurrent expenditure while deficit spending will be on capital investments.

The Rf3.8 billion (US$246 million) allocated for capital expenditure and net lending in 2012 represents a 43 percent increase from 2011, Inaz noted, adding that “the main reason [for the increase] is the estimated rise in foreign aid and large projects” such as the construction of 500 housing units with loan assistance from the Indian Exim (Export-Import) Bank and 2,500 housing units with loan assistance from the Chinese Exim Bank.

“Although total expenditure will increase as a result of these projects, we believe it is one of the most important projects that should be undertaken right now as resolving the shortage of housing is also the solution to a number of social problems,” Inaz said.

Investment programmes in 2012 fall under two broad categories of climate change and adapation programmes – which includes coastal protection, harbour construction, land reclamation, investments in renewable energy as well as establishing water and sanitation systems – and socio-economic investment programmes such as the housing projects.

Reiterating that the main priority in formulating the budget was to ensure value for money spent in terms of providing services, Inaz however explained that “due to the present structure of the state, Rf32 out of every Rf100 is spent on salaries and benefits, Rf6 is spent on interest payments on loans and Rf13 is spent on administrative costs.”

“After spending Rf27 [out of every Rf100] on capital expenditures, there is just Rf22 left to spent on services that offer direct benefits to the public,” he said, adding that Rf22 out of every Rf100 had to be spent on loan repayments.

2011

As expenditure outstripped revenue by Rf3 billion (US$194.5 million) in the 2011 budget of Rf12.9 billion (US$836 million), Inaz said the deficit was plugged through foreign aid and loan assistance as well as proceeds from privatisation and sale of T-bills and bonds.

Government income is meanwhile expected to reach a record level of Rf9 billion (US$583.6 million) this year.

Based on current estimates, said Inaz, the economy grew by 7.5 percent in 2011 compared to 5.7 percent in 2010. The forecast for economic  growth in 2012 is however 5.5 percent.

On the tourism industry, which accounts for 70 percent of GDP, Inaz said arrivals were expected to have risen 21 percent in 2011 from the previous year.

As of the end of September, tourist arrivals are 17.7 percent higher than 2010.

Although fish catch by volume rose 3.9 percent from 2010 in the first seven months of the year, Inaz said the Maldivian fisheries industry was not expected to improve in the next two years with the continuing decline of fishing in the Indian Ocean.

The introduction of long-line fishing and development of an aqua-culture and mari-culture industry was important to raise productivity, Inaz suggested.

With imports expected to rise in 2012, Inaz said the current account deficit will increase from 26 percent of GDP in 2011 to 28 percent next year.

To plug the widening current account deficit, said Inaz, economic policies in the budget were geared towards increasing exports and growing small and medium-sized businesses.

Inaz explained that the worsening balance of payments was tied to the ballooning fiscal deficit since 2005, which increased local currency in circulation and resulted in an “unstable foreign exchange market” and the creation of a black market for dollars.

In addition to tightening fiscal policy and rationalising expenditures, Inaz said money changers had to be regulated and the use of Maldivian rufiyaa as the legal tender should be enforced.

Expressing concern that 47 percent of transactions in the domestic economy were made through other currencies, the Finance Minister called on the Maldives Monetary Authority (MMA) as the country’s central bank to take measures to enforce the use of rufiyaa as legal tender.

A senior government official meanwhile told Minivan News that the government was still waiting on the income tax bill to be passed by parliament. The proposed tax will apply only to those who earn over Rf 30,000 a month (US$2000).

“It is not significant in terms of revenue, but it is important in terms of governance as it gives us the full picture,” the source said. “It will enable a full system of reporting and close loopholes that allow people to pass off business income as their own.”

The 3.5 percent tourism goods and services tax will be raised to six percent next year.

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Eliminating gender inequality essential for development, says President

Eliminating gender inequalities is essential for the nation to benefit from women’s contribution to economic development and progress, President Mohamed Nasheed said in his weekly radio address on Friday.

Speaking on the ‘International Day for the Elimination of Violence against Women,’ Nasheed expressed gratitude and encouragement for the campaign against domestic violence launched by a gender advocacy working group under the slogan ‘Thinakun Ekeh’ (one in three).

The slogan refers to the findings of a Ministry of Gender and Family study in 2007, the first comprehensive nationwide survey of domestic violence in the Maldives, which revealed that one in every three women between the ages of 15-49 has been a victim of domestic violence.

“Although it is believed that the status of women in our society is better in comparison to other SAARC nations, active participation of women in important sectors in the country is comparatively low,” Nasheed observed. “For example, while 24 percent of women are unemployed in the Maldives, that figure is eight percent in Sri Lanka. Out of all SAARC countries, the Maldives is at the bottom in this respect.”

While women make up 28 percent of the Afghanistan parliament, Nasheed noted that women represented just seven percent, or five out of 77 MPs, in the Maldivian parliament.

“The most important facility for a country’s development is its people,” he said. “And since women are half of the population in any country, for a certainty their full participation will speed up the pace of development.”

The President noted that legislation on domestic violence was submitted to parliament in October 2010 and sent to committee in November, urging MPs to “pass the bill as soon as possible.”

Compassion and care from others is important to give women the courage to “surmount obstacles and escape the different forms of violence they face,” said Nasheed, recognising the activities of NGOs and women’s rights advocates.

Meanwhile, the Thinakun Ekeh gender advocacy group organised events on Friday in collaboration with the United Nations Population Fund (UNFPA) to launch a 16-day campaign against domestic violence with programmes to disseminate information of its incidence and raise public awareness.

The gender advocacy group was formed on September 29, 2011 with UNFPA assistance to “work with strategic partners in civil society, media, parliamentarians and religious institutions to pave ways for women and men to work together to find lasting solutions to the society’s most serious social, economic and political problems.”

An information session took place at the artificial beach late Friday afternoon after a run round Male’. Participants included Prosecutor General Ahmed Muiz, philanthropist Mohamed Waheed Deen, former Foreign Minister Dr Ahmed Shaheed, former Gender Minister Aneesa Ahmed and members of civil society organisations.

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