Maldives News Bulletin - Volume 161

Discover latest updates of the Government

Date: October 22, 2024 | Issue 161

President to present amendment to Tobacco Control Act

President Dr Mohamed Muizzu has announced that amendments to the Tobacco Control Act will be presented in Parliament on Tuesday, marking a significant step in the Government’s efforts to curb tobacco consumption in the Maldives.

The President shared this news via a post on his official X account this evening.

Alongside banning the importation and use of vaping devices in the country, the Government plans to raise the legal age for trading tobacco and tobacco products to 21, in an effort to deter young people from picking up the harmful habit.

Last week, the President proposed a comprehensive master plan to reduce tobacco consumption in the Maldives, which includes amendments to the Export-Import Act to increase duties on tobacco products, e-cigarettes, and related flavours and chemicals. He also instructed authorities to take action against those who violate public smoking regulations. 

He has directed authorities to prohibit the importation of vaping devices and their components starting November 15. Additionally, from December 15, the use, possession, manufacture, sale, advertising, and free distribution of vaping devices will be banned. 

The President also noted that the amendments will propose stringent enforcement measures to address violations of the Tobacco Control Act.

SOURCE : The President’s Office

The Vice President arrives in Samoa for the 27th Commonwealth Heads of Government Meeting 2024

Vice President His Excellency Uz Hussain Mohamed Latheef arrived in Apia, Samoa, this morning to attend the 27th Commonwealth Heads of Government Meeting (CHOGM) 2024. He is accompanied by a high-level government delegation.

Upon arrival at Faleolo International Airport, the Vice President was warmly received by Hon. Faualo Harry Jeffrey Schuster, the Samoan Minister for Police and Prisons and Her Excellency Dr Iruthisham Adam, the High Commissioner of Maldives to the UK.

During his visit, the Vice President will engage in high-level discussions on critical global issues and participate in the Commonwealth Business Forum. Additionally, he will hold bilateral meetings with world leaders to further strengthen the Maldives’ international role and contribute to addressing global challenges.

The Vice President will also attend the Executive Sessions of CHOGM and deliver interventions.

This Administration, under the leadership of President His Excellency Dr Mohamed Muizzu, remains committed to active international engagement and fostering strong bilateral relations with key global partners.

SOURCE : The President’s Office

Government owned companies to require chartered accountants

The Minister of Finance, Moosa Zameer, has announced plans to amend regulations, mandating that all Government-owned companies appoint a chartered accountant. This initiative aims to enhance the financial management of these entities, as highlighted by the Minister during a press conference addressing public expenditure management issues.

Minister Zameer emphasised the Government’s commitment to reforming state-owned enterprises (SOEs), noting that audits for companies like Fenaka Corporation revealed a lack of proper financial statements prepared by accountants. He acknowledged previous efforts by former Ministers of Finance to address these shortcomings and confirmed discussions with the President to implement this requirement.

The Finance Minister stated, “The Government will determine the accounts of each SOE through a chartered accountant in Maldives, necessitating each SOE to hire an accountant and establish an auditing system.”

He underscored the need for a robust legal framework to manage state assets within these companies, ensuring accountability for those responsible. Noting that there was a specialised section within the ministry and a separate legal institution, Minister Zameer highlighted that this was leading to legal conflicts.

Meanwhile, Attorney General Ahmed Usham highlighted ongoing legal ambiguities regarding representation for state-owned companies, noting the absence of a sufficient system to investigate recent corruption cases within these entities. He suggested that a dedicated regulatory body for Government companies might enhance oversight, indicating that previous management under the Ministry of Finance had been more effective. He added that any necessary legal amendments were under consideration to resolve these issues.

SOURCE : PSM

Minister Ihsan emphasizes importance of statistics in shaping effective policies

Minister of Homeland Security and Technology Ali Ihsan has emphasized the importance of statistics in shaping effective Government policies. He made the remarks during the National Statistics Day event hosted by the Maldives Customs Service.

Speaking at the event, Minister Ihsan noted that strong statistical decisions can significantly benefit the country and its businesses. He also noted that nearly 50 percent of imports are duty-free, which results in a substantial revenue loss for the state, calling for a review of these figures to improve revenue generation. He further addressed the previous trend of concealing statistics in Maldives, advocating for greater transparency and accessibility of data for the public.

Meanwhile, Commissioner General of Customs Fathimath Dhiyana highlighted the Customs Service’s responsibility to provide accurate import and export statistics, pledging to prioritize data disclosure. She stressed the necessity of data-driven decisions for the nation’s development across various sectors.

National Statistics Day, celebrated annually on October 20, aims to recognize the vital role statistics play in guiding informed decisions for the Government, businesses, and society.

SOURCE : PSM

Minister Thoriq says enhancing island electricity networks for PV system installation

The Minister of Climate Change, Environment, and Energy, Thoriq Ibrahim, has said that work is ongoing to enhance electricity networks on islands to facilitate the installation of solar photovoltaic (PV) systems under the Net Metering Regulations. Speaking to Parliament, the Minister emphasised that these initiatives aim to help households reduce their electricity bills.

In response to Parliamentarian Amin Faisal’s concerns about some households on Kanditheemu Island not receiving permission to install solar PV systems, Minister Thoriq explained that the electricity grid on the island can only accommodate a maximum of 40 percent additional connections, as exceeding this limit could jeopardise the grid’s stability, particularly in the context of climate change.

The Minister noted that solar PV systems on the island currently supply 43 percent of the island’s peak load, and further installations can be supported by enhancing battery energy storage and the electricity network. He reiterated the Government’s commitment to providing solar PV systems to island communities by developing battery systems and network infrastructure.

The Minister also addressed questions regarding protected areas in the Maldives, revealing that whilst 96 areas have been designated as protected, only five are being effectively maintained. He stated that the Government’s goal is to improve the management of these sites and highlighted ongoing efforts to train personnel and secure funding for these initiatives.

SOURCE : PSM

Bidding open to develop ecotourism in Baarah

Ministry of Tourism and Baarah Island Council have signed an agreement, opening bidding opportunities to implement the ecotourism project on Baarah Island in Haa Alif Atoll, as per the pledge of President Dr Mohamed Muizzu.

The project will be executed in collaboration between the Ministry and the Island Council, with the Ministry overseeing all technical aspects. The project entails developing a tourist hotel with at least 75 rooms on a site of 71,832 square metres. Additionally, a specific area will be protected in partnership with the Ministry of Climate Change, Environment, and Energy.

Minister of Tourism Ibrahim Faisal highlighted that this initiative significantly enhances the tourism bed capacity in Haa Alif Atoll. Council Member Ibrahim Shujau assured that the project will be carried out in alignment with the needs of residents and noted that the area designated for the project has been expanded, creating an appealing opportunity for investors.

This initiative demonstrates the Government’s dedication to promoting ecotourism on local islands by leveraging cultural and environmental resources to increase tourist arrivals.

SOURCE : PSM

Gov’t proposes amendments to increase duties on tobacco products

The Government has proposed and submitted amendments to the Export Import Act aimed at increasing import duties on tobacco and tobacco products as part of its efforts to control tobacco use. The bill was presented to Parliament by Parliamentarian Ibrahim Mohamed.

The proposed amendments include increases in import duties on cigarettes, e-cigarettes, and the flavours and chemicals used in vaping products and all tobacco products. Additionally, the importation of e-cigarettes, vape products, and related items will be banned starting 15th November.

Attorney General Uz Ahmed Usham explained that the amendments propose a 25 percent duty and USD 0.20 per cigarette. Flavours and chemicals added to e-cigarettes or other tobacco products will incur a 50 percent duty and USD 0.52 per millilitre on goods imported before the cutoff date.

Moreover, the amendment includes a 50 percent duty and USD 0.52 per stick on heated tobacco products, which are designed to be heated without combustion. The Government is also proposing a 200 percent duty on e-cigarettes and vaping devices.

The bill outlines the estimated revenue from these import duties, projecting that the Maldives will collect approximately USD 68 million next year. It also includes amendments related to the circumstances under which import duty and royalty revenues can be exempted.

Starting next month, the duties on cigarettes and tobacco will be raised, as stated by President Dr Mohamed Muizzu. Furthermore, the President has announced plans to implement a ban on vaping, effective from 15 December. He confirmed that the import of vaping devices and their components will be prohibited starting 15 November.

SOURCE : PSM

Road development studies set to begin in Male’, Vilimale’

The Ministry of Construction and Infrastructure has announced its readiness to conduct studies for the development of roads in Male’ and Vilimale’.

The State Minister for Construction and Infrastructure, Ibrahim Nazeem, informed PSM News that the reconstruction of the roads will commence shortly to address the existing issues. Preparations for the necessary studies are underway, and technical experts will soon arrive in the Maldives to initiate this research. He stated that the completion of the roadworks will provide a lasting solution to the challenges currently faced by these roadways.

The road development in Male’ and Vilimale’ will be funded through grants from the Chinese government. This initiative includes paving city roads and enhancing water and sewerage systems, electrical infrastructure, stormwater management, and fire hydrants.

Earlier this year, the Road Development Corporation (RDC) was awarded the contract to conduct topographic, geotechnical, and hydrological surveys, and Environmental Impact Assessments (EIA) for the road construction project in Vilimale’. A total of 5.6 kilometres of roads will be constructed, including the installation of electrical, sewerage, and drainage systems.

The primary challenges facing the roads in Male’ include deterioration and flooding. Whilst previous efforts have been made to address these issues, no permanent solutions have been implemented to date. In the interim, temporary drainage systems are being installed in the most flood-prone areas of the city.

SOURCE : PSM

Gov’t to implement licensing system for RAC servicing sector

The Minister of Climate Change, Environment, and Energy, Thoriq Ibrahim, has revealed that efforts are underway to ensure that individuals employed in the refrigeration and air conditioning (RAC) sector are certified and have special licences. The remarks were made by the Minister during the ceremony held to sign a memorandum of understanding (MoU) between the Environment Ministry and the Maldives Polytechnic.

Speaking at the ceremony, Minister Thoriq emphasised the potential for growth in the refrigeration and air conditioning sector. He underscored the importance of issuing certified licences to professionals in the field and announced that efforts are underway to process these certifications. The Minister expressed optimism that by the end of the year, all work in the sector will be conducted by certified and licensed individuals.

During the ceremony, Zooshan Kamaluddin, Chief Executive Officer of Maldives Polytechnic, highlighted the strong support for the programme training refrigeration and air conditioning technicians. She mentioned that several atolls have expressed interest in hosting the programme as well. The CEO emphasised that the sector faces significant challenges, particularly the shortage of trained and certified experts.

The MoU, which pertains to training Refrigeration and AC technicians nationwide, is part of the Government’s broader efforts to establish a licensing system for the RAC servicing sector. This three-year MoU aims to enhance the skills of individuals in the field while strengthening the RAC sector. It also aims to increase employment prospects within the field and ensure that all professionals working in the sector are properly licensed.

SOURCE : PSM

Minister of State, Dr. Ibrahim Shiyam participates in APRSO Annual Meeting 2024 

Minister of State, Dr. Ibrahim Shiyam participated in the #APRSO Annual Meeting 2024 in Tokyo. 

During the event, he delivered a presentation on “Climate Change Risks to Transport and Their Impact on Road Safety in the Maldives.” 

In addition to contributing to insightful panel discussions and engaging in interactive sessions, he also visited the Honda Crash Test Facility to explore cutting-edge road safety innovations.

SOURCE : Ministry of Transport and Civil Aviation

Two vessels fined USD 1.9 million for damaging reef

The Environmental Protection Agency (EPA) has imposed fines totaling USD 1.9 million on two vessels, Tug Anadi and Barge AM Manumit, which ran aground north of Hulhumale’ on February 21. The vessels were successfully recovered from the shore in April.

Following the incident, the EPA conducted a survey to assess the damage caused to the surrounding reef, in collaboration with surveyors appointed by the vessel owners. The survey revealed that 1,159 acres of reef had been severely damaged. As a result, the EPA has decided to fine The Middle East Marine LLC, the operator of the vessels, USD 1.9 million.

This is not the first instance of penalties imposed on The Middle East Marine LLC, as a previous tug and barge owned by the company had also been fined for similar violations. Penalties for damage to reefs are enforced under the Environmental Protection and Conservation Act, as well as the Penalties and Compensation for Environmental Damage Regulations.

SOURCE : PSM

HDC to publicise names of businesses with outstanding debts

Housing Development Corporation (HDC) has decided to publicise names of businesses that fail to repay outstanding debts. In a statement released, HDC stated that this initiative aims to enhance the Corporation’s management and operations, as well as to take necessary actions against businesses that have not settled their debts. The HDC has informed all parties to ensure that all payments for both commercial services provided by the Corporation and properties leased and allocated for development, are completed by 30 November.

HDC warned that businesses failing to meet their payment obligations will receive one final notice. Following this, their names and the amounts owed will be published on the corporation’s website. Additional information regarding outstanding debts can be requested via email.

HDC’s announcement comes at a time when state-owned enterprises are strengthening their operations and management practices by ensuring timely receipt of funds while minimizing liabilities.

SOURCE : PSM

MIRA granted authority to withhold bank accounts of tax evaders

The Maldives Inland Revenue Authority (MIRA) has been granted enhanced authority to take immediate action against individuals evading tax payments by withholding their bank accounts.

Under the revised Rules on Seizure of Funds in Bank Accounts, MIRA can now seize funds from the accounts of tax evaders under specific conditions, thereby eliminating the previous 60-day waiting period. This amendment allows MIRA to act promptly upon issuing the necessary notices.

Furthermore, the notice period for tax evaders has been reduced from two 30-day notices to a single 15-day notice. The timeline for advancing to the next stage after disclosing the names of non-payers has also been shortened from 15 days to just five.

MIRA’s Assistant Commissioner General of Enforcement Fathmath Ameeza emphasized that the amendment is not intended to result in immediate account freezing but to ensure adherence to the law. Taxpayers will be contacted first to resolve any outstanding issues.

The new regulations also introduce significant concessions for taxpayers. MIRA has established a system for the automatic deduction of owed amounts for individuals who have not fulfilled their tax obligations, ensuring that no punitive action will be taken against them for non-payment. However, should substantial tax debts persist, the agency will pursue recovery measures.

SOURCE : PSM