Maldives News Bulletin - Volume 254

Discover latest updates of the Government

Author

The President's Office
March 11, 2025

Date: March 11, 2025 | Issue 254

MIRA records hike in revenue collections in February

 State revenue collections in February have seen an increase of 5.4 percent in comparison to the same period last year, Maldives Inland Revenue Authority (MIRA) figures have shown.

According to the figures, MIRA had collected USD160.2 million in February, which is also 5.1 percent more than the expected figure for the month.

The increase was primarily due to GST collections, which almost amounted to half the total revenue. GST collections in February were USD79.8 million, followed by income tax revenue with USD26 million.

In addition, USD19.9 million was collected as lease period extension fees, USD9.7 million as green tax, and USD6.6 million as departure tax, according to the figures. During this period, airport development fee amounted to USD6.4 million, while USD revenue collection stood at 118 million.

The revenue increase in February 2025 compared to last year was primarily due to the collection of lease period extension fees and the increment in collection of corporate income tax, MIRA said.

Meanwhile, the initial deadline for corporate income tax coincided with a public holiday, leading to an extension of the deadline to 2 February, which further contributed to the increment in collections, it added.

 SOURCE : PSM

Government repays costly USD100 million loan to foreign agency

 The Ministry of Finance and Planning has repaid a USD100 million loan taken from a foreign financial agency during the previous Government.

The previous Government borrowed the loan from Cargill Financial Service International, a United States-based financial agency in 2022 as budget support, rather than to fund a major project. The terms of the loan included an interest rate of 7.15 percent, with repayment over three years. As a result, the Government paid an additional USD26 million as interest on top of the original USD100 million loan.

The loan has now been repaid in full by the Government of President Dr Muhammed Muizzu amid allegations that the Government lacked the capacity to meet its loan obligations for the year. Refuting these claims, a Finance Ministry official said all loans were being repaid in accordance with the loan agreements. The Finance Ministry also noted that there have been no issues in meeting the Maldives’ debt commitments.

In addition to the USD100 million borrowed from Cargill Financial Services International, the former Government borrowed millions in loans in the name of implementing major projects. However, many of the projects have not been completed, while some are at a standstill. The Finance Ministry noted that by the end of the former administration, in addition to foreign debt, significant amounts were owed to local companies that implemented various projects. Therefore, in addition to managing foreign debt, the Government is also making payments owed to local companies, the Ministry said.

The previous government’s fiscal policies led to significant financial challenges for the Maldives. However, President Dr Mohamed Muizzu’s Government has implemented strong measures to get the economy back on track. With these policies, the Government believes that this year will be a year of economic growth and prosperity for the people.

SOURCE : PSM

Government to regulate Tourism Trust Fund with amendment to Tourism Act 

The Government is looking to establish and regulate the Tourism Trust Fund under the Tourism Act instead of the Finance Act. 

The amendment to the Tourism Act was submitted to the parliament by the ruling People’s National Congress (PNC) lawmaker Ahmed Riyaz. 

In addition to the establishment and regulation of the Tourism Trust Fund, the amendment has also proposed changes to the designation of islands, lagoons and land through cross-subsidy tourism development, extension of the period allowed for construction, and a clause on temporary closure of tourist establishments for redevelopment. 

According to the proposed amendment to the Tourism Act, the President will now be given the authority to designate uninhabited islands and lagoons under the jurisdiction of local councils for tourism development. However, the respective island council will still reserve the right to designate any land on the island for tourism development, according to the amendment. 

The proposed amendment to the law has also added a provision on closure of tourist establishments for upgrades or redevelopment. According to the new clause, the lease agreement of the establishment seeking redevelopment must be revised in accordance with the regulations formulated by the Ministry of Tourism and Environment. 

The amendment grants the authority to the Ministry to penalise establishments that do not complete the re-development work within the term of the agreement and cancel the lease agreement without compensation. 

The Tourism Trust Fund established under this amendment will facilitate the provision of financial assistance to the tourism sector under a two-pronged policy, manage such assistance in good faith, develop the resources of the sector, and enhance capacity. The fund will invest in the development of tourism facilities, and the deposits to the fund will be invested as permitted by law. 

Once the proposed amendment to the Tourism Act is signed into law, the Tourism Fund will be established, and the Tourism Industry Trust Fund established under the Finance Act will be abolished. 

According to the amendment, sponsorships, both local and foreign, corporate social responsibility contributions from tourism operators, and return on investments will go into the trust fund. 

Once the fund is established, a trust fund management committee will be formed representing the associations registered with the Ministry of Tourism and the Ministry of Finance. The composition and rules of procedure of the committee shall also be specified in the regulation made under this Act. 

SOURCE : PSM 

WAMCO contracted to establish waste management facilities across 32 islands 

The Waste Management Corporation (WAMCO) has been awarded a contract to construct waste management facilities and buildings on 32 islands. The agreement was signed between the Ministry of Tourism and Environment and WAMCO, with Minister of Tourism and Environment Thoriq Ibrahim signing on behalf of the Ministry, and WAMCO’s Managing Director Mujthaba Jaleel signing on behalf of the corporation. 

Speaking at the signing ceremony, the Minister said the establishment of waste management facilities and centres in the islands will require the full cooperation from the island councils and island residents. This will ensure the timely completion of the project, he said. 

President Dr Mohamed Muizzu has pledged that proper waste management systems will be established on all islands of the Maldives by the end of the year. The President said, in order to achieve this, the existing waste management centres on 128 islands will be upgraded. 

The Environment Minister said, in addition to the 32 islands included in the agreement signed on Monday, contracts to establish waste management facilities on the remaining islands will be signed in the coming weeks. 

Speaking at the signing ceremony, WAMCO’s Managing Director Mujthaba said the work of establishing an adequate waste management system is being carried out by WAMCO employees based in the region.

Therefore, the work will be carried out at a lower cost while also avoiding outsourcing the work, he said. 

“We are also constructing waste management buildings. Therefore, our staff will be aware of how to build the facilities in the most convenient way to manage waste on the island. We are also doing upgrades,” Mujthaba said. 

Mujthaba further emphasised that WAMCO’s goal is to establish and commence waste management systems on islands where urban centres will be established, as well as in atoll capitals before the end of the year. 

In addition to the 32 islands included in the newly signed contract, WAMCO was also awarded the construction of waste management facilities on two other islands last month. Therefore, establishment of waste management systems on 34 islands, including upgrade work, will be carried out by WAMCO. While new buildings will be constructed on 21 islands, upgrade work will be implemented on the remaining islands. 

The Government aims to complete the work on all islands by the third quarter of this year. 

SOURCE : PSM

Government offices to close for the last ten days of Ramadan starting March 20 

Government offices will be closed for the last ten days of Ramadan, beginning Thursday, March 20. This decision follows a directive issued by the President’s Office on February 4, 2024, which designates the final ten days of each Ramadan, starting from 1445, as official Government holidays. The move aims to uphold Islamic principles, promote appreciation for Islamic values, and prioritise acts of worship. 

The directive also instructs Government authorities to ensure the continued provision of essential services and to communicate operating hours to the public during this period. 

SOURCE : PSM

Mariyam Sham’aa appointed as new Registrar of Companies 

Mariyam Sham’aa Ismail has been appointed as the new Registrar of Companies. 

Sham’aa succeeds Mariyam Visam, who stepped down from the role earlier this month after eleven years in service. 

Sham’aa holds a Bachelor of Law from University of West of England, Bristol. She has been serving as the Consumer Ombudsman since 2021. Prior to that, she worked as a Legal Consultant at the Ministry of Economic Development and Trade. She has also served as the Legal and Policy Director of the Human Rights Commission of the Maldives (HRCM) and as Registrar of the Supreme Court. 

The Registrar of Companies is legally empowered to oversee various company-related matters. This includes ensuring that companies operate in accordance with the Companies Act and taking action against companies that fail to pay dues. The registrar also holds the power to approve company names and dissolve companies. 

SOURCE : PSM

Kendhikulhudhoo to introduce community-based tourism 

Kendhikulhudhoo, Noonu Atoll has devised a concept to introduce community-based tourism to the island. 

The Kendhikulhudhoo Island Council plans to lease land under the concept and is now seeking public opinion regarding the regulation. 

In a strategic effort to position Kendhikulhudhoo as a premier local tourism destination, the Island Council has adopted the brand name ‘The Mangrove Island,’ as announced by the council. This initiative, according to the council, heralds the commencement of extensive advertising and marketing campaigns under the new identity. 

According to the Island Council, the concept of community-based tourism has been introduced to provide opportunities for young entrepreneurs and businesses. The regulation on leasing land under the concept is now open for public comment, it said. 

Prospective applicants must be a resident of Kendhikulhudhoo, or a business registered in the island, or a business in which a resident of Kendhikulhudhoo holds at least 50 percent of the shares. 

The size of the land allocated is 1,200 square feet each, where at least 300 square feet of green area must be dedicated as a buffer zone, according to the Island Council. 

Kendhikulhudhoo has been granted necessary permits to offer homestay services to visitors. Projects are underway to construct luxury villas on the island, with plans for these villas to feature 70 rooms. The development of a city hotel is also advancing rapidly, with a portion of the 70-bed city hotel expected to be completed and operational by the end of this year. 

Kendhikulhudhoo is renowned for its breathtaking natural beauty and distinctive environmental features, including one of the largest mangrove forests in the Maldives. The island is home to nine distinct mangrove areas, forming a rich and diverse ecosystem. Among these, three mangroves span from 400 feet to 3,000 feet. The island’s wetlands serve as a sanctuary for numerous bird and fish species, and Kendhikulhudhoo boasts a healthy soil profile that supports lush vegetation. 

SOURCE : PSM