Day: April 27, 2014

Parliament approves hiking airport service charge to US$25

Parliament today approved legislation to raise the airport service charge from departing foreign passengers to US$25 from July onward as part of the current administration’s revenue raising measures.

The amendment bill submitted on behalf of the government by Progressive Party of Maldives MP Abdul Azeez Jamal Abubakur was passed with 32 votes in favour.

The government anticipates over MVR100 million (US$6.4 million) in additional revenue from the increased departure tax.

Parliament has also approved other revenue raising measures proposed by the government, including hiking import duties, reintroducing the bed tax until the end of November, raising the Tourism Goods and Services Tax (T-GST), and introducing GST for telecommunications services from May 1.

A proposal by the administration of former President Mohamed Waheed to raise the service charge to US$30 was narrowly defeated in April 2013.

The 1978 law imposing the airport service charge on departing passengers was first amended under the Maldivian Democratic Party government and raised to US$18.5 for foreigners.

The imposition of a similar Airport Development Charge (ADC) of US$25 by Indian infrastructure group GMR was previously a major point of contention for the Waheed administration, which terminated the concession agreement with the GMR-led consortium to modernise the airport in December 2012.

Other bills

A raft of other bills were also passed at today’s sitting of the People’s Majlis, including a bill on the state wage policy that was vetoed by former President Waheed in December 2012.

The legislation proposes the creation of a five-member National Pay Commission chaired by the finance minister with part-time members to determine salaries and allowances for the public sector and authorise pay rises.

The bill stipulates that the commission must consider the cost of living, inflation and the consumer price index in determining wages.

Moreover, salaries should incentivise government employees to work in islands with small populations.

The commission would also formulate standards and rules for determining the state’s pay scale or appropriate salaries based on qualifications and nature of employment.

Legislation on sole proprietors and business registration submitted by the administration of former President Nasheed in 2011 as part of an economic reform package was also passed today.

According to the draft legislation on business registration, the bill seeks to ensure that businesses, partnerships and cooperative societies operating in the Maldives are properly registered; specify what kind of businesses must be registered along with procedures for registration; and oblige businesses to submit information to the Registrar of Businesses.

The bill was also vetoed by President Waheed in April 2012 citing “socio-economic” concerns.

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Home Minister Umar Naseer pleads not guilty to charges at Criminal Court

Home Minister Umar Naseer denied charges of ‘disobedience to an order’ at the first hearing of his trial at the Criminal Court today.

Judge Abdulla Didi told Naseer’s lawyer to respond to the charges at the next trial date, according to local media.

Naseer is accused of calling for 2,000 volunteers on January 23, 2012 to storm the Maldives National Defence Force (MNDF) headquarters with 50 ladders during the two weeks of protests sparked by the military’s controversial detention of Criminal Court Chief Judge Abdulla Mohamed.

On the night in question, Umar told anti-government demonstrators in front of the Maldives Monetary Authority building that they should use tactics to tire out the soldiers on duty before climbing into the military barracks, at which point “the people inside will be with us.”

“From today onward, we will turn this protest into one that achieves results,” Naseer had said.

“We know how people overthrow governments. Everything needed to topple the government of this country is now complete.”

After he was questioned by the police in September 2012, Naseer told the press that “there will be no evidence” to prove he committed a criminal offence.

“In my statement I did not mention where to place the ladders or where to climb in using the ladders.” Naseer had said.

If convicted, Naseer faces banishment, imprisonment or house arrest not exceeding six months or a fine not exceeding MVR150 (US$ 10) under article 88(a) of the penal code.

The case against Naseer was submitted to the Criminal Court by the Prosecutor General’s office in December 2012 after police concluded their investigation.

The 22 consecutive nights of protests by the then-opposition in January 2012 culminated in the resignation of President Mohamed Nasheed on February 7 in the wake of a violent mutiny by riot police officers.

Speaking at a Progressive Party of Maldives rally days after the controversial transfer of presidential power, Naseer claimed he had warned the president’s closest aides that Nasheed could “lose his life” if he did not comply with the ultimatum to resign.

Naseer said he told the president that he could “either surrender with bloodshed or surrender peacefully”.

Naseer also told Australia’s SBS Dateline programme that he was organising the protests from a “command centre” and that he feared for Nasheed’s life.

In January 2013, Naseer said the ousting of the Maldivian Democratic Party government was the result of “planning, propaganda and a lot of work.”

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