Government grants duty exemptions for resort refurbishment material

The government has decided that no duty would be levied on items imported for refurbishment of resorts for the next three years.

Speaking at a press conference by the Economic Council on 10 November, Minister of Tourism Ahmed Adeeb said that the government’s policy was to encourage the introduction of new resorts, and that items purchased for refurbishment of resorts would be exempt from import duty for three years with effect from 1 December 2014.

“[It has been decided that] material imported for refurbishment of operating resorts, new resorts, and resorts where construction has been suspended, would be exempt from import duty. The purpose is to boost construction,” said Adeeb.

He said that this move would expedite the development of new resorts, and as more resorts open, income would increase for the country through taxes.

Minister of Economic Development Mohamed Saeed said that the duty exemption for resort refurbishment material would benefit small and medium-sized firms, as well as operators of luxury resorts.

Adeeb also assured that the Tourism Goods and Services Tax (TGST) would not be increased beyond 12 percent. He said that the Green Tax, which was earlier announced at 10 percent from next year onwards, would be imposed at the rate of $6 from November 2015.

He added that Green Tax would not be collected from tourists staying at guest-houses, and that the income from this tax would be used to find solutions to the problem of waste management in Thilafushi.

Minister at the President’s Office Mohamed Hussain Shareef said that efforts were ongoing to secure foreign aid to attract more foreign investment. He said that he was confident that aid would be received for the Bridge Project and the project to develop the international airport.