News

President plans to allocate local tourism tax to councils

President Dr. Mohamed Muizzu has announced his plans to amend the law to allocate a portion of the tax revenue generated by the island tourism industry directly to local councils. He made the announcement while speaking at a gathering with the residents of Keyodhoo, Vaavu Atoll.

Speaking at the gathering, President Dr. Muizzu emphasised that the taxes, including the Goods and Services Tax (GST) paid by industrial activities in the islands, would be essential in enhancing the living standards of island residents. He also pledged to ensure that local councils receive a designated share of the Tourism Goods and Services Tax (TGST), which is collected by the Maldives Inland Revenue Authority (MIRA). To achieve the goal, he plans to propose amendments to the Tourism and Decentralisation Act.

Additionally, President Dr. Muizzu highlighted the amendments as an opportunity for councils to independently spearhead island development initiatives. He outlined plans to expand local tourism, undertake environmental projects such as waste management, and facilitate the engagement of councils with other key economic sectors beyond tourism.

Furthermore, President Dr. Muizzu revealed plans for Keyodhoo, including land reclamation for housing projects, major waste management initiatives, and enhancements to the island's health services. He also committed to constructing additional classrooms, establishing a sports facility, and creating a children's park on the island.