Hundreds queue for cigarettes as import duty hiked

Hundreds of people queued up to buy cigarettes before import duties were hiked on a range of goods today.

Block-long queues formed outside tobacco shops The Root and OCC last night, with smokers in what OCC managing director Mohamed Mumthaz described as a “state of panic”.

From today, import duty on tobacco is 200 percent (up from 150 percent) . Some shops have already raised prices from MVR38 (US $2.47) to MVR47 ($3.05) a pack.

Mumthaz believes the public is afraid that big businesses will take advantage of the hike in import duties and hoard cigarettes in order to reduce the supply in the market, so that they can sell at an inflated price.

OCC has resorted to rationing cigarette sales, Mumthaz said. The Root is also rationing, selling only one carton each to individuals and two to retailers.

Some 42 per cent of Maldivians smoke, according to World Bank data.

Meanwhile, a 10 percent duty has also been introduced on petroleum products. About 30 percent of the Maldives’ GDP is spent on importing fossil fuels.

In 2012, US$486 million was spent on oil imports, and the figure is estimated to rise to US$ 700 million by 2020.

Among other items, custom duties for luxury cosmetics and perfume have increased from zero to 20 percent.

Duties on liquor and pork were raised to 50 percent, while duty will be doubled to 200 percent on land vehicles such as cars, jeeps, and vans.

The government previously had plans to raise import duties on staple foods like rice, flour and sugar, but it reversed the decision after criticism from the public.

Retail shop owner Ali Jaleel said that his shop has not increased any prices, but estimates that prices will go up with the next shipment of goods.

“Rising prices is inevitable but necessary for the government to keep on going like this. I do not think it is a problem,” he said.

Parliament approved the import duty hikes in December 2014 as part of revenue-raising measures proposed with the 2015 state budget. The government anticipated MVR533 million (US$34.5 million) in additional income from import duties.

Along with raising import duties, the government has decided to implement a new “green tax”, and estimates that it will receive US$ 100 million as acquisition fees for the newly developed Special Economic Zones by August this year.

However, on Monday (March 30), just two days before the implementing date of the hikes, Economic Development Minister Mohamed Saeed announced that the government has decided not to increase duty on garments or motorcycles.

“We are doing this to make it easier on the people because they are necessities,” Saeed told Haveeru.

During the parliamentary budget debate, opposition Maldivian Democratic Party (MDP) MPs strongly criticised the proposed tax hikes, contending that the burden of higher prices would be borne by the public.

The current administration’s economic policies – such as waiving import duties for construction material imported for resort development and luxury yachts – benefit the rich at the expense of the poor, MDP MPs argued.

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Queues return to Indian High Commission as Maldivians seek Indian visas

Queues have started to form outside the Indian High Commission in Male’ as people seek to obtain Indian visas.

Earlier this month the Foreign Ministry decided to hand back all Indian visa application operations to the Indian High Commission following a “decline” in visa requests.

However, local media reported that Maldivians began to queue outside the High Commission building at 11:00pm on January 26 after having their visa applications rejected for various reasons.

Despite media reports, an official in the Indian High Commission denied there had been overnight queuing outside the commission building.

“Some people had come in the morning a little early so there may have been a slight queue then, but was no overnight queuing. If a problem does arise we will find a solution,” the high commission official told Minivan News.

Minivan News was awaiting a response from the Foreign Ministry at time of press.

In his address during Indian Republic Day celebrations in Male’ on Friday, Indian High Commissioner D M Mulay said India offered its assurances “that no Maldivian would ever be denied visa to India and we will work very closely with the Maldivian authorities to resolve all the outstanding issues in a spirit of cooperation and good will. ”

Last month, Maldivians were forced to queue outside the Indian High Commission – in some cases overnight – to obtain medical visas in order to travel to India.

To alleviate the issue, the Foreign Ministry launched an SMS system that alerted individuals when it was their turn to have their visas processed.

However, following a decline in visa requests this month, Maldivians wishing to obtain tokens for their Indian visas to be processed will now have to use the Indian High Commission building as before, as the Foreign Ministry is no longer providing the service.

A spokesman from the Foreign Ministry told Minivan News earlier this month that should the demand for visas increase, the ministry will take measures to ensure all visas are processed.

“If there is a requirement we will consult the Indian High Commission. It is currently issuing 53 tokens per day and we think that is working fine for now,” he said. “We will ensure that Maldivians get their visas.”

The Indian High Commission has claimed the tightened restrictions were in line with a bilateral agreement signed back in 1979 and its appropriation by Maldivian authorities in the intervening years.

A source within the Indian High Commission, speaking to Minivan News in December last year, contended that all visas given to Maldivians for travel to India were provided free of charge – a courtesy he claimed was not extended to Indian citizens coming to the Maldives for work.

The commission spokesperson added that the introduction of the tighter regulations was imposed as a clear “signal” from Indian authorities that the concerns it had over practices in the Maldives such as the confiscation of passports of migrant workers, needed to be brought to an end.

Last week, the High Commission presented journalists with a list of 11 consular grievances, including discrimination and mistreatment of its expatriates and the routine withholding of passports by government departments.

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Foreign Ministry halts issuing India visa application tokens

The Ministry of Foreign Affairs has decided to hand back all Indian visa application operations to the Indian High Commission following a decline in visa requests, a Foreign Ministry spokesman has confirmed.

Last month Maldivians were forced to queue outside the Indian High Commission in Male’ – sometimes overnight – to obtain medical visas to travel to India due to tightened restrictions by Indian authorities.

To alleviate the issue, the Foreign Ministry launched an SMS system that alerted individuals when it was their turn to have their visas processed.

However, following a decline in visa requests this month, Maldivians wishing to obtain tokens for their Indian visas to be processed will now have to use the Indian High Commission building as before, as the Foreign Ministry is no longer providing the service.

A spokesman from the Ministry of Foreign Affairs told Minivan News that the decision to hand back full control of the visa process to the Indian High Commission was due to a “decline in visa requests”.

“During the school holidays there were more locals requesting visas to go to India, however the holidays are over now and the demand is less.

“Also, only 50 percent of the people we contacted by SMS to collect their visas from the high commission actually turned up,” the spokesman added.

Asked as to what would happen should the visa demand suddenly increase, the spokesperson assured the ministry would take measures to “ensure” all visas are processed

“If there is a requirement we will consult the Indian High Commission. It is currently issuing 53 tokens per day and we think that is working fine for now,” he said. “We will ensure that Maldivians will get their visas.”

An official from within the Indian High Commission today confirmed that visa applications to India had decreased, noting that today there had been “less than 50” applicants.

“The Foreign Ministry is only taking difficult cases now as the arrangement from December was only a temporary solution to deal with the circumstances,” he said.

The official admitted that there was a possibility for the queues to increase following the switch, however added “if there is a problem, we will try our best to find a solution to it.”

Visa restrictions

The High Commission has claimed that the tightened restrictions were in line with a bilateral agreement signed back in 1979 and its appropriation by Maldivian authorities in the intervening years.

A source within the Indian High Commission, speaking to Minivan News on December 29, 2012, contended that all visas given to Maldivians for travel to India were provided free of charge – a courtesy claimed to have not been extended to Indian citizens coming to the Maldives for work.

The commission spokesperson added that the introduction of the tighter regulations was imposed as a clear “signal” from Indian authorities that the concerns it had over practices in the Maldives such as the confiscation of passports of migrant workers, needed to be brought to an end.

On November 26 last year, a public notice had been issued by the Maldives Immigration Department requesting no employer in the country should be holding passports of expatriate workers.

The Maldives has come under strong criticism internationally in recent years over its record in trying to prevent people trafficking, with the country appearing on the US State Department’s Tier Two Watch List for Human Trafficking three years in a row.

The high commission also claimed this year that skilled expatriate workers from India, employed in the Maldives education sector, had continued to be “penalised” due to both government and private sector employers failing to fulfil their responsibilities.

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UK electoral system “not corrupted, but certainly corruptible”, say observers

A team of Commonwealth Election Observers have released a report claiming that the UK electoral system is corruptible “and open to fraud.”

While believing the recent UK election was undertaken in a free and fair manner, this was a success based on “trust” rather than “controls and deterrents.”

The observers suggested improving the identification of voters at registration and polling stations, better verification of postal ballots to close certain loopholes, centralisation of electoral roll records to prevent multiple registrations in more than one constituency, and more staff at polling stations to ensure people can vote in a timely manner.

This last issue caused widespread condemnation following the day of the election, with thousands of voters queuing outside venues turned away when the ballot boxes closed at 10pm. Many people in London reported waiting in lines for several hours, with many office workers struggling to vote in time.

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