Tourist facilities given 3-months to pay outstanding rent, fines

The Ministry of Tourism has warned tourist resorts, hotels and guest houses with outstanding debts to settle at least 25 percent of unpaid rent and fines by July 20, 2011 or face the revoking of licenses.

According to a statement released by the ministry Thursday, operating licenses granted by the ministry will be revoked or withheld if the overdue amounts owed to the state were not paid in full during the next three months.

“If the monies owed by July 20, 2011 is not paid in the next three months from July 12, 2011, the cases [of non-payment of rent and fines] will be forwarded to the Ministry of Finance and Treasury,” the statement said.

It adds that the resorts, hotels and guest houses with unpaid rent and fines have been informed of the government’s decision.

Local media meanwhile reported that the tourism companies owed a total of US$20 million to the government.

Tourism Ministry Deputy Director General Hassan Zameer told Minivan News today that the Maldives Inland Revenue Authority (MIRA) was responsible for tax collection and would be calculating the figure owed as of July 20.

Zameer however confirmed that the rent and fines for non-payment were owed by a total of 10 resorts.

Asked if the ministry was receiving cooperation from the tourist businesses, Zameer said that it was “hard to say they’ve been cooperating because the measure we’ve taken was of the last resort.”

The businesses were given “a final warning” on July 5, he explained, after which the cabinet decided to give a 90-day notice as stipulated in the tourism laws.

MIRA has meanwhile sued six of the companies to recover outstanding rent and fines. The cases are ongoing at the Civil Court.

According to MIRA’s quarterly report for June, a total of Rf1.2 billion (US$93 million) was collected in the second quarter, 81 percent of which were dollar receipts.

Tourism land rent, tourism goods and services tax (TGST) and tourism tax represents 23 percent, 17 percent and 16 percent respectively of total revenue.

A total of Rf521.5 million (US$40.5 million) was collected as tax revenue in the month of June.


4 thoughts on “Tourist facilities given 3-months to pay outstanding rent, fines”

  1. oh how nice to only have to pay 25% now which is so overdue its nearly come around to not being due! Well, sets a nice precedent for income tax, suggest we all don't pay until we get chased and chased and then chased and then oh go on then I'll pay 25% of my bill!!! LMAO

  2. @ dave jones.. If only you knew who owed this $20 mil to the state your comment would have been different. The 10 resort owners are all from the power elite at the helmn of the nation today....

  3. @Moosa: Yes this is the case, perhaps Anni is nothing but a tool for certain greedy people's ambition and vengeance, but please, don't you realize that if a passionate and intelligent Maldivian refused to do the bidding of the power brokers you talk about, that they would never come to power as they would not have the financial backing of these guys. We see many thousands of passionate and intelligent people, Azra who writes as the example I just read, um... Yaamyn the blogger who writes, oh hell look, there are hundreds, BUT... IF they came forward and wanted to put their ideals into practice, THEY would have to do the bidding of the elite whose will is insatiable greed!

    PLEASE tell me more about Ibra and his background. Take Ibra, he was intelligent, courageous (first to combat the issue of torture in the Majlis years and years back) yet he would not do the bidding of the elites, he was all 'social-liberal' and wanted some justice for the have nots as well as economic growth etc... Yet how did he go in the elections, he was pounded!

    The problem is not one than be solved by any individual! It has to be a massive collective movement pushing the Government for workers rights etc....

    Get rid of Anni in the next five years, and noone else wouild be able to come to power without doing the bidding of the super greedy rich...

  4. @BEN PLEWRIGHT: I could almost cry at the truth your comment holds.
    The most innocent and humane politician is the one who tells the LEAST LIES....


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