Amendment to continue collection of Bed Tax, withdrawn

Government has withdrawn its amendment to the Tourism Act, asking the parliament to remove the clause which stipulates that the government shall stop imposing Goods and Services Tax from tourism businesses after a 3 year period of implementation.

The amendment to Article 25 (a) of the Tourism Act was proposed by Vilufushi MP Riyaz Rasheed on behalf of the government . He said that the purpose of the amendment was to increase government revenue by continuing to collect Goods and Services Tax from tourism businesses without disruption. He said that the amendment was part of the changes the government has planned to propose to the Tourism Act in order to finance this year’s budget.

“We can manage with the budget today, only by increasing the state revenue. There is no other way,” said MP Riyaz.

MP Riyaz however withdrew the amendment during its debate time today, after stating that the MPs from parties of the current coalition do not support the amendment. Chair of the parliament ceased the debate following MP Riyaz’s request for its withdrawal.

Most of the members in parliament opposed the amendment today saying that the proposal of an amendment asking for the continued collection of Bed Tax after the parliament had allowed the increase of the T-GST and the eventual cessation of the Bed Tax, was a to make a mockery of the parliament.