Following mounting concerns over the recently enforced strict foreign currency regulation, the government has submitted a new foreign currency bill to the parliament which includes a revenue percentage option for tourist establishments. The bill was introduced by Parliamentarian Ibrahim Falah.
Central bank, Maldives Monetary Authority (MMA) during a press conference later, said the new bill had been drafted to address some concerns raised by tourism industry stakeholders through intensive consultations.
The regulation mandates Category A establishments which include tourist resorts, integrated resorts, resort hotels and tourist vessels to exchange USD500 through a locally registered bank for each tourist they accommodate.
For Category B establishments include tourist guest houses and hotels with fewer than 50 rooms, the exchange requirement is USD25 per tourist.
However, the new bill has now offered an option of exchanging 20 percent of the total foreign currency revenue.
Governor of MMA Ahmed Munawwar told reporters that despite the concession, the ultimate target of the government has not been compromised. He added that the new option had been included, which would now be fair to both sides.
The bill also offers new exceptions with tax, debt, and other foreign currency payments deductible from the forex obligation.
Local tax authority, Maldives Inland Revenue Authority (MIRA), has been given more powers to effectively enforce the new law, which include demanding financial information from establishments for suspected cases of evasion and non-compliance.