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Saturday 23 Nov 2024
LOCAL EDITION
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LOCAL EDITION
Maldives President Dr. Mohamed Muizzu ratifies the 13th amendment to the Tourism Act, which has come to effect. (Photo: President's Office)
President Dr. Mohamed Muizzu on Thursday, ratified the 13th amendment to the Maldives Tourism Act (Act No. 02/99).
The amendment, which was passed by the parliament on August 19, 2024, during the 30th sitting of its second session, introduces to the fee payment deadlines for lease period extensions on islands or land leased by the Tourism Ministry.
The deadline for fee payments associated with lease extensions have been adjusted in the new amendment, by shortening the payment period, for each year of extension, to six months.
Leaseholders who choose to pay the fee within the first six months after the amendment to the Tourism Act takes effect will have to pay a fee of USD 100,000 per year. The amendment also stipulates that the leaseholders opting to make the payment after the passing of this duration is expected to pay an annual fee of USD 200,000.
The amendment further revised how leaseholders of tourist resorts and integrated tourist resorts can extend their leases for an additional forty-nine years, for which leaseholders are required to pay a lump sum of USD 5 million within the first six months. If this payment is delayed beyond the first six-month window, the fee will double to USD 10 million.
Additionally, the amendment has modified provisions related to lease extensions of islands leased under number 5 of Section 5(j) and Section 16-16(e) of the Tourism Act. With these amendments, these islands may extend their leases by an additional forty-nine years, provided the leaseholders pay the requisite of USD 5 million for the extension, along with any outstanding rent, fines, or taxes.
Following the presidential ratification, the amended Act has been published in the Government Gazette and has come into effect.
The current government has been exploring and implementing measures to increase the state revenue, especially drive up the foreign currency income, which is aimed at providing long-term solution to the state’s increase fiscal and debt burdens.
