Committee passes bill on shorter payment period for resort lease extensions

The Parliament’s Whole House Committee on Thursday passed a bill submitted by the government to amend the Tourism Act in order to shorten the payment period for extensions to the lease of islands and land issued for tourist resorts from two years to six months.

The committee passed the bill with a unanimous vote of 75 during a meeting on Thursday morning.

The bill was now been sent to the floor for the final vote.

The bill, sponsored by Dhangethi MP Abdulla Rasheed, are amendments to Article 9 of the Tourism Act.

The law currently stipulates that the payment for lease extensions of up to 50 years must be settled within two years. But with the new amendment – the payment period will be shortened to six months.

As such, those who agree to settle the payment within six months will need to pay USD 100,000 for each year of extension. Those who agree to settle the payment over a period of more than six months will be required to pay USD 200,000 for each year of extension.

The bill also stipulates that lessees must settle all outstanding leases, fines, taxes and fees owed to the state. This does not include the lease payments and fines extended through agreements with the Tourism Ministry.