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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“2012 is going to be a duty free year”: President

President Mohamed Nasheed ratified amendments to the Export-Import Act of 1979 on Thursday, enacting a key piece of legislation in the government’s economic reform package intended to reduce and eliminate import duties for a wide range of goods from January 2012.

Under the amended Act, zero rate now applies to construction material, foodstuffs and machinery run of renewable energy.

In his weekly radio address on Friday, Nasheed said the budget submitted to parliament “will make 2012 a duty free year.”

As a result of the shift from indirect to direct taxes, Nasheed noted, government revenue from custom duties levied upon imported goods will drop by Rf700 million next year.

Economic forecasts predict that prices for some items would fall by 9 or 13 percent, he added.

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South Asia’s ability to shape its future never stronger: leaders address SAARC

The 17th SAARC Summit was opened this afternoon in Addu City by Prime Minister of Bhutan, Lyonchhen Thinley.

The leaders of Nepal, Pakistan, Sri Lanka, Afghanistan, Bangladesh, Bhutan and India arrived at the purpose-built Equatorial Convention Centre in motorcades, escorted by police outriders in ceremonial uniform, dozens of bodyguards and an ambulance.

The Maldives National Defence Force (MNDF)’s Rehendi helicopter hovered overhead, while arriving heads of state emerged from their vehicles to be greeted by President of the Maldives Mohamed Nasheed and First Lady Laila Ali. They entered the convention hall to the sound of bodu beru drums and the sight of local girls waving paper garlands.

“South Asia is more powerful and prominent than any other time in its history. The future is ours to shape,” President Mohamed Nasheed said, in his inaugural address as the new Chairman of SAARC.

“Our economies are booming. Our political influence is growing. And our ability to shape the course of world affairs has never been stronger. Our populations are youthful and energetic. Our thinkers, researchers and scientists are globally renowned. Our culture is internationally acclaimed. Our private sector companies are some of the world’s largest and most profitable,” Nasheed said.

Citizens in SAARC countries had similar aspirations, he noted: “They want to live in societies based on the rule of law, in which basic freedoms are protected. They want the chance to succeed in our region’s economic miracle. They want what everyone wants: a decent life to live in dignity.”

Nasheed raised three key areas of focus: trade, transport and economic investment, security against piracy and climate change, and good governance.

However climate change, he said, was the greatest long-term threat affecting the region, “causing havoc, threatening our development and prosperity. But the solution to climate change is not cutting back. Rather, it is investing in the new, clean technologies that not only reduce pollution, but also improve energy security and provide long term economic growth.”

President Nasheed also noted the potential for a human rights mechanism in SAARC, “not to point fingers, or open historic and painful wounds, but because we have a duty to improve the lives of citizens.”

Nasheed welcomed the proposal to set up a SAARC Independent Commission on Gender, commenting that South Asian women “suffer from a wide range of disadvantages and discrimination. Women in our region have some of the world’s lowest rates of property ownership and political representation.”

He finished on an optimistic note: “The fundamentals of our region are strong. We have young, energetic populations. We live in a region of vibrant democracies, with strong civil societies.”

“As our economies race ahead, our political importance increases ever more. Let us not be held back by history or convention. Let us be the leaders our people want us to be. Let us change our region for the better. Let us change the world,” Nasheed said.

Leaders address SAARC

In his address to the SAARC delegates, Prime Minister of Nepal Baburam Bhattarai observed that SAARC nations were situated “in the cradle of human civilisation, with abundant natural and human resources. But despite this, our potential is unfulfilled. We face widespread poverty, unemployment and inequality.”

The largest number of world’s poor “live in our region”, Bhattarai said, but the “flow of growth, people and ideas has been hindered and our potential remains unfulfilled.”

Pakistani Prime Minister Yousaf Raza Gilani congratulated Nasheed on hosting the first SAARC Summit in the southern hemisphere.

In bilateral talks on Thursday morning with Indian Prime Minister Manmohan Singh, the historically tense relationship between the two nuclear-armed nations lightened after the two leaders took measures to ease trade limitations. Singh even described Gilani as a “man of peace” following the meeting.

In his speech to the assembled delegates, Gilani emphasised that Economic development was linked to the availability of energy at a reasonable price, an and urged investment “in harnessing indigenous energy sources such as solar, wind, biomass and hydro power.”

President of Sri Lanka, Mahinda Rajapaksa, meanwhile prioritised education in his speech, stating that as leaders, “we have a sacred duty to develop our people.”

“In Sri Lanka we believe in social mobility. Education, communications and healthcare must be made available to all,” said Rajapaksa, adding that “ignorance, deceit, and poverty” were “common evils” facing SAARC nations.

“Social equality goes hand-in-hand with economic progress,” he stated, emphasising that this could only be achieved through peace and security.

President of Afghanistan, Hamid Karzai, also highlighted the importance of education in his address.

“Despite the progress we have made, lack of education and unemployment is a vicious cycle that is creating fertile ground for extremism,” he said.

A stable Afghanistan would enable its use as a land bridge between many countries and greatly improve trade links in the region, he said.

While terrorism was the biggest cause of suffering for the Afghan people, he said, the violence was not only limited to Afghanistan, but also affected Pakistan and India.

“We need to overcome the trust deficit that exists and learn to cooperate,” Karzai said.

He noted that Afghanistan was pursuing a strategic long term partnership with the United States, but said he wished to “reassure our neighbours that such a partnership is no threat to the region.”

The theme of education was continued slightly differently by Prime Minister of Bangladesh, Sheikh Hasina, who in her address emphasised the need for SAARC countries to promote cross-border educational cooperation by institutions such as universities. Bangladesh was interested in opening a university in the Maldives, she added.

Like the Maldives, Bangladesh was also very vulnerable to climate change, Sheikh Hasina said.

“Along with the global economic crisis, we are vulnerable to factors beyond our region,” she said. “Increases in fuel and food prices due to climate change jeopardise a sustainable way of life for our people.”

Another priority for Bangladesh was the expansion of the SAARC convention of the prevention and combat of trafficking in women and children.

“We want to ensure our migrant labour is well treated when working in other countries,” Sheikh Hasina said.

Prime Minister of Bhutan, Lyonchhen Thinley, expressed hope for “youth and dynamism” now the chairmanship of SAARC had been passed to President Mohamed Nasheed and the role of Secretary General to Fathimath Dhiyana Saeed, both the first female and youngest person to assume the role in the organisation’s history.

Despite the distance between the Maldives and Bhutan, the two countries had a surprising number of similarities, Thinley said – and not just because they were the two smallest SAARC nations.

“Rising temperature is a threat to our ecology, and while our GDP is improving, we need to diversify our economy,” he said.

As former SAARC Chairman Thinley was among the most vocal about the effectiveness of SAARC, warning against empty rhetoric and noting “that there is a feeling that cooperation should yield more concrete results.”

“There has been a failure to resolve geopolitical realities, and we have allowed ourselves to be guided by the politics of the past. Good intentions have been foiled, or remain only in documents. Progress has stalled, depriving South Asia of the opportunity to flourish as a peaceful region with people free of poverty,” he said.

Intra-region trade was not more than five percent of the total volume, and cultural interaction between countries was limited, he said.

Furthermore, antagonists such as the “mischevious media” confined goodwill to symbolic gestures.

“We have half the world’s poor. We need be bigger and bolder than those who are holding us back,” he said.

“At the same time, mankind is hurtling toward self-annihilation, and the planet’s capacity to provide for a growing population is declining day by day. We extract, sell, consume, waste and pollute, while our financial system is unravelling.

“We need to act before global order is compromised and a frightened world falls into disarray. We cannot allow natural resources to fall to a level where there is a violent struggle for control.”

GDP was adopted as an indicator of social progress 70 years ago, Thinley said, and was an ineffective measure of human happiness. Bhutan had shifted its perspective towards sustainable development and was taking a more holistic approach, he said.

Indian Prime Minister Manmohan Singh was among the most direct of the leaders, reeling off initiatives India was pursuing.

He announced India’s willingness to facilitate the development of a regional telecommunications infrastructure and promote broadcasting exchanges.

Singh offered India’s scientific and technological base to assist SAARC countries in their development, “and above all our young population who will drive consumption and investment in the years ahead.”

India also proposed establishing a travelling exhibition on the ancient history of South Asia, with pieces drawn from each SAARC member country, hosted in each country’s national museum for three months.

Singh announced the doubling of scholarships offered to post-graduate courses in South Asian University, from 50 to 100, and a further 10 scholarships for doctoral studies in forestry.

“We have to learn to trust each other and to learn from each other. The security of our countries are closely interlinked,” Singh said. “None of us can prosper in isolation. We cannot afford to allow the many problems we face to stand in the way of our ambitions and dreams.”

The Summit is being observed by Australia, China, the European Union, Iran, Japan, South Korea, Mauritus, Myanmar and the United States, as well as many international institutions.

Eighty percent of Commonwealth in SAARC

Outside the convention centre following the meeting, Commonwealth Secretary General Kamalesh Sharma observed to Minivan News that 80 percent of the population of the Commonwealth live in SAARC countries.

“Five of the eight SAARC countries are in the Commonwealth,” he noted.

While acknowledging that this meant there was “a lot of overlap” between the two organisations, the Commonwealth could offer its experience in developing areas such as the rule of law.

“For me it has been very useful to meet the leaders in person. This year is pioneering – this is the first time the head of the Commonwealth has been invited to SAARC,” Sharma said.

Many of the goals of SAARC countries, expressed by their leaders during their respective addresses, boiled down to “a better deal for their people”.

“One remark that particularly stuck me was that ‘no country is working in isolation’,” Sharma said, adding that in developing as a regional body SAARC could learn from the “bitter lessons learned in Europe.”

“As for speed, you can’t change the facts on the ground. There are competing ideologies, and pace is determined by politics,” he acknowledged.

There was space within SAARC for a human rights mechanism, he said, and while many of its concerns related to trade, once the vehicle existed it could be used to talk about human rights as well.

“If SAARC wanted help with this, we would provide it,” he said.

On Friday the Heads of State will attend a Summit Retreat at the Shangri La resort, while their spouses are entertained in Fuvahmulah, before the Summit resumes in the afternoon.

Statements will be made by SAARC observer nations, and agreements will be signed. President Nasheed will present his concluding address, and the delegates will depart in the evening.

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President opens cultural centre in Hithadhoo

President Mohamed Nasheed opened a cultural centre in Hithadhoo of Addu City yesterday, which exhibits aspects of Maldivian culture and tradition.

The President attended the opening of the centre following Eid prayers in Feydhoo, after which he toured the joint islands and extended Eid greetings to the public.

Nasheed also cut a special cake at a breakfast in Maradhoo to celebrate the SAARC summit.

In an interview with Adduonline later in the day, Nasheed said the establishment of infrastructure in Addu City was part of a larger development scheme for the southernmost atoll.

Aside from participating in a Addu City State Square cleaning programme in the afternoon, the President and First Lady took a bicycle tour of the recently completed Hithadhoo main road.

Meanwhile in his weekly radio address on Friday, President Nasheed praised the “impeccable preparations” by the “patriotic citizens” of Addu City, expressing gratitude to the public as well as officers of the Maldives National Defence Force (MNDF) and Maldives Police Service (MPS) for their efforts.

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President departs on official visit to France

President Mohamed Nasheed departed on an official visit to France this morning.

President Nasheed will hold talks with French Environment Minister Nathalie Kosciusko-Morizet and French Foreign Minister Alain Juppé.

According to the President’s Office, discussions will focus on bilateral French aid and official assistance programmes to the Maldives.

President Nasheed will also meet senior management of Agence Française de Développement (AFD), a French international development agency, to discuss development and financial assistance in terms of access to water and sanitation.

Meanwhile the President has also invited to the fourth annual Democracy Forum to be held in Bali, Indonesia in December.

The letter of invitation was presented to Special Envoy of the President Ibrahim Hussain Zaki by the Special Envoy of Indonesia Abdurrahman Mohammad Fachir at a meeting that took place at the President’s Office.

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Fiscal deficit in 2011 expected to fall to single digit, says President

The government expects the fiscal deficit to have fallen to a single digit at the end of the year, below the previous forecast of 11 percent of GDP, President Mohamed Nasheed said in his weekly radio address on Friday.

“The budget deficit as a percentage of GDP or national productivity has been estimated for next year at [budget] meetings with ministers and heads of government offices,” he said. “From that estimate we know that government expenditure has been substantially reduced in a number of different areas. For this year, we forecast a budget deficit of 11 percent. We have noted now that it has been reduced by three or four points.”

The government hoped that the fiscal deficit would be below 10 or “a single digit figure” when it is calculated at the end of the year, he said.

The budget deficit, which stood at just 1.9 percent of the economy in 2004, expanded to 7.3 percent in 2006 and ballooned to 23.9 percent in 2007, according to the International Monetary Fund (IMF).

The fiscal deficit exploded on the back of a 400 percent increase in the government’s wage bill between 2004 and 2009, with tremendous growth between 2007 and 2009. On paper, the government increased average salaries from Rf3000 to Rf11,000 and boosted the size of the civil service from 24,000 to 32,000 people – 11 percent of the total population of the country – doubling government spending from 35 percent of GDP to 60 percent from 2004 to 2006.

While preliminary figures had pegged the 2010 fiscal deficit at 17.75 percent, “financing information points to a deficit of around 20-21 percent of GDP”, down from 29 percent in 2009, the IMF noted in March this year.

“We see bringing the fiscal deficit down as the key macroeconomic priority for the Maldives,” the IMF’s Mission Chief to the Maldives, Rodrigo Cubero, told Minivan News at the time. “A large fiscal deficit pushes up interest rates, thereby undermining private investment and growth, and also drives up imports, putting pressure on the exchange rate and inflation, all of which hurts the Maldivian people, particularly the poor.”

“Further efforts are still needed to reduce the fiscal deficit. Those efforts should comprise further tax reforms as well as measures to reduce expenditure and to improve the channelling of social expenditures to the needy.”

Meanwhile in a booklet issued to media titled “the DRP’s response to the government’s economic nuisance package,” the main opposition Dhivehi Rayyithunge Party (DRP) strongly objected to a bill on fiscal responsibility currently before parliament.

The bill was “a plot” devised to wrest financial control from local councils and negate parliament’s contentious amendments to the Public Finance Act, the DRP argued.

The DRP also noted that provisions on imposing limits to government spending would only come into force after 2013.

“In the past three years, the MDP [Maldivian Democratic Party] government earned billions of rufiya by selling off state assets, facilitating business opportunities for their friends and introducing new taxes,” the DRP said. “Nonetheless, while the health sector, the education and overall standard of living has gone from bad to worse, it is unclear how the government spent the billions and billions of rufiya it received.”

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Fifteen suspected drug kingpins loose, President reveals

Some 15 suspected drug kingpins arrested on charges of drug trafficking are loose in society and “there’s no way to even know when they will face trial,” President Mohamed Nasheed revealed in his weekly radio address on Friday.

Speaking from Dhidhoo in Haa Alif Atoll during a tour of Thiladhunmathi, President Nasheed expressed concern with suspects in high-profile cases released from detention while they were awaiting trial.

“Since the Prosecutor General’s Office (PGO) can only press charges after the investigation is complete, a long period [spent on investigation] provides the opportunity to influence witnesses, change their testimony and produce false testimony,” he explained.

Among other main challenges for securing convictions, said Nasheed, “it is also a problem when scientific and other kinds of evidence has no weight due to the absence of rules or guidelines to assess evidence presented to trial and the crime is not proven in major cases.”

Moreover, he continued, suspects arrested with large amounts of cash were not required to account for the money while Criminal Court judges often issued inconsistent rulings in similar cases.

As drug-related cases are heard only by the Criminal Court in Male’, Nasheed observed that a large backlog of cases was pending and “[suspects] have the opportunity to repeat the offence until the trial date”.

He added that it was important to amend the law to allow island courts to try local drug dealers.

The Criminal Court meanwhile issued a two-page press release the day after the President’s remarks dismissing criticism of the courts as having “no legal weight” and stating that “trying to shift the blame to another every time you are faced with something is not responsible.”

The constitution assured all citizens the right to be considered innocent until proven guilty, the Criminal Court statement noted, “therefore all should believe that everyone brought before the court on suspicion of committing a crime cannot be detained and that everyone who faces criminal charges cannot be found guilty.”

The court also noted that lower court rulings, court orders and verdicts could be appealed at the High Court.

“The court does not consider the seriousness of the allegations against a person,” it reads. “The court considers the evidence presented against the person. Submitting evidence is not something the court does. What the court does is assess and weigh the evidence presented.”

The Criminal Court referred to article 49 of the constitution, which states that, “No person shall be detained in custody prior to sentencing, unless the danger of the accused absconding or not appearing at trial, the protection of the public, or potential interference with witnesses or evidence dictate otherwise. The release may be subject to conditions of bail or other assurances to appear as required by the court.”

The court also reiterated a recurring complaint that according to court records a number of suspects brought before the court had previously been sentenced to long jail terms and “no authority of the state could prove that even one of these people had been released to society on a Criminal Court order.”

Top six

Speaking to islanders of Dhevvadhoo on May 2, 2009, President Nasheed said that the identities of the top six drug dealers in the country were known to the government.

However, he added that the arrests would be viewed as politically-motivated because they included members of the opposition. Nasheed’s remarks were made a week before the parliamentary elections.

Press secretary Mohamed Zuhair told Minivan News at the time that arresting the six would effectively stop the supply of narcotics into the Maldives.

Of the six, who were responsible for “budgeting, importing and distributing” drugs, some had fled the country, he said, and Interpol had been notified.

Meanwhile, according to police statistics, the number of reported drug-related cases declined in 2010 from 2,484 in 2008 and 2,366 in 2009 to 1,618 last year. The Drug Enforcement Department (DED) investigated and forwarded 844 cases for prosecution.

However overall conviction rates were low – of the 17,854 cases closed in 2010, 3323 were sent to the PGO. Of these, 1108 were sent back and 776 ended in convictions. Only 75 convictions were recorded from cases begun in 2010.

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First international fast food chain opens in Maldives

President Mohamed Nasheed attended the official opening of Marrybrown, a halal Malaysian fast food chain and the first international fast food chain to come to the Maldives.

The Marrybrown franchise currently operates in 15 countries worldwide. The restaurant in the Maldives was established by Lily International Private Limited, a leading business venture in the Maldives.

In his speech at the opening ceremony, the president thanked Lily International for its various contributions to Maldivian businesses since the 1980s.

The president also noted that the Maldivian lifestyle is changing to accommodate businesses enterprises such as Marrybrown, and that steps are being taken by the government to facilitate competition in the open market. The president said necessary legal amendments such as tax and state income laws were being made, and hoped more service enterprises would be established in the Maldives.

Marrybrown Chairman Lawrence Liew said the chain caters to a general population. “We have something different for everyone at a reasonable price in a clean environment. Our kids play centre creates a positive family space,” he said.

President Nasheed eats the inaugural fried chicken burger

After a moment of technical difficulties, Marrybrown opened its doors to the president, the press and the public. The President tasted the chain’s first fried chicken burger in the Maldives alongside franchise and government officials, and was given a tour of the facility which includes an air conditioned interior dining and play area and an upper open air veranda.

Families flocked to the restaurant doors for the next few hours, eager to acquire the free fried chicken meals that were being distributed in honor of the occasion.  A chipmunk mascot in a signature pair of green overalls welcomed children to the event outside, while groups were let in in stages to avoid crowding.

“The menu for Maldives was specially designed over the last six months by our chefs, and is a combination of Malaysian and Maldivian cuisines,” Co-Founder and Group Management Director Nancy Leiw told Minivan News.

When asked about the health value of the fast food menu, Leiw claimed Marrybrown “delivered all the necessary nutrients.”

“It’s a very balanced diet. Think about a burger. You have your carbohydrates, your protein, the lettuce gives you valuable vitamins and minerals, you have everything you need.”

Burgers are served with tomato and chili sauce packets and soft drinks.

Liew said that the franchise owner is “an ambitious businessman”, and that Marrybrown will be expanding business in the Maldives. “We don’t just serve food, we serve people. We will be providing opportunities in employment, business management, and local development,” she said.

The Marrybrown opening was facilitated by Malaysian staff, who will train Maldivian employees to “pass on our expertise and style of customer service,” said Liew.

The franchise’s nationality bore special connotations for the Maldives. “Malaysia is Muslim, and the Maldives is Muslim. We share a special synergy in Islam,” said Liew. “This synergy will allow us to work together in productive ways to create new opportunities for growth in line with our shared cultural standards.”

Liew noted that Marrybrown is celebrating 30 years of operation this year, and will be holding promotions and fundraising events for local charities and businesses throughout the year.

Marrybrown plans to open several more restaurants in the Maldives in the near future.

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DRP requests six month delay for general GST

Main opposition Dhivehi Rayyithunge Party (DRP) Leader Ahmed Thasmeen Ali has sent a letter to the President requesting a six-month delay to the introduction of a 3.5 percent Goods and Services Tax (GST) approved by parliament last month.

In his letter, the minority leader noted that according to parliamentary rules of procedure, only the government could submit tax legislation. He urged the government to delay the implementation of the GST to allow businesses enough time to prepare. The General GST is due to come into force on October 2.

Thasmeen argued that a number of citizens could be subject to legal penalties specified in the legislation if they were not provided sufficient information about registering and paying the new direct tax.

In a booklet handed out to media last month titled “DRP’s response to the government’s economic nuisance package,” the party noted that the General GST would affect small businesses such as cornershops, cafes and teashops.

The businesses would “need a lot of preparation” to maintain accounts, install “modern computer systems and hire accountants” as well as provide customer’s statements showing the GST percentage.

Morever, taxing “total value of business transactions” would not be possible with GST at zero percent for some items.

Considering the potential “administrative confusion” and the country’s heavy reliance on imports, the DRP argued that levying a customs duty at the entry point to the country was more effective.

President’s Press Secretary Mohamed Zuhair told Minivan News today that the government viewed the DRP as the main opposition party and “gives a high priority to their concerns.”

“But the President has been advised by financial experts that all taxes should be part of one network and it is not sensible to omit one tax for the whole system to work,” he said.

Zuhair noted that “people wanted to delay the introduction of political parties” in the past, adding that “we have lost 30 years without a tax system.”

In May, the International Monetary Fund (IMF) approved a three-year support programme after the government agreed to “a package of policy reforms that will help stabilise and strengthen the Maldives’ economy.”

Under the IMF programme, the government committed to:

  • Raise import duties on pork, tobacco, alcohol and plastic products by August 2011 (requires Majlis approval);
  • Introduce a general goods and services tax (GST) of 5 percent applicable to all sectors other than tourism, electricity, health and water (requires Majlis approval);
  • Raise the Tourism Goods and Services Tax (TGST) from 3.5 percent to 6 percent from January 2012, and to 10 percent in January 2013 (requires Majlis approval);
  • Pass an income tax bill in the Majlis by no later than January 2012;
  • Ensure existing bed tax of US$8 dollars a night remains until end of 2013;
  • Reduce import duties on certain products from January 2011;
  • Freeze public sector wages and allowances until end of 2012;
  • Lower capital spending by 5 percent
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