Saeed: Vehicles older than 20 years will be taken after providing compensation

Transport Minister Mohamed Saeed, on Wednesday, stated that, under the newly enacted Land Transport Act, the state will acquire vehicles over 20 years only after providing their owners with fair compensation.

The Land Transport Act, ratified by President Dr. Mohamed Muizzu on August 31st, prohibits the operation of land vehicles more than 20 years after their date of manufacture, except for specific categories that will be identified under subsequent regulations.

Speaking at a press conference held to outline the provisions of the new legislation, Minister Saeed said the President’s vision is to enhance national safety while limiting the financial and personal burden on citizens. He added that a balanced approach would be taken to address the decommissioning of older vehicles.

"This means we will consult with the public to establish a middle ground that ensures citizens do not face undue hardship or financial strain during this transition," the Minister explained.

He further noted that the legislation provides a three-year grace period before the provisions prohibiting the use of older vehicles come into effect. Even after the grace period expires, he said, special measures will be introduced for individuals required to discontinue the use of vehicles over 20 years.

"The government, or an entity designated by the government, will acquire these vehicles after paying a determined value," he added.

Under the new Act, a vehicle’s registration will be revoked once it reaches 20 years since manufacture. The legislation also authorizes the Ministry to implement a program to purchase such vehicles from their owners in accordance with procedures to be established through regulations. The regulations are expected to set out criteria for determining vehicle values, procedures for providing compensation or payments to owners, and mechanisms for private-sector participation in the program.

A previous study conducted by the Islamic University of Maldives (IUM) to assess the carrying capacity of the Malé area found that the region is experiencing significant congestion. Published in April last year, the study estimated that approximately 30,000 more vehicles are currently operating in Malé City than the area’s recommended capacity.