Minister of Cities, Local Government and Public Works Adam Shareef Umar has announced that the government will waive import duty on equipment imported by local councils for the purpose of providing municipal services.
Speaking on a PSM News programme, the Minister highlighted the government’s commitment to empowering local councils financially under efforts to enhance the decentralization system. In this regard, in order to alleviate financial burdens on local councils, the government will provide duty exemption on machinery and equipment imported by local councils for municipal services, he said.
“For example, Vaadhoo island of Gaafu Dhaalu Atoll is importing a high-mark [excavator]. When the machine arrives, the Ministry will commence the process to waive the duty incurred on that item. Similarly, councils can request duty waivers for imports intended for municipal services,” he explained.
The Minister emphasised that an empowered, financially independent council that provides efficient services will benefit the people, and further strengthen and enhance the decentralization system.
Shedding light on other efforts to empower councils, the Minister said a share of the tax revenue generated from local guesthouses will be directed to local councils in the near future. The Ministry is collaborating with the Attorney General’s Office (AGO) to draft legal amendments to achieve this, he added.
Additionally, the government has already decided to grant control of nearby lagoons and uninhabited islands beyond a council’s jurisdiction to local councils to engage in economic activity and generate revenue.