The new tourism taxes

Royal Island Horubadhoo

Two new taxes are soon going to be introduced to tourism sector replacing one old tax which is the bed tax. The first tax which will be replacing the bed tax will be land tax which is going to be set as follows:

11$ per square meter for an island which is less than 50000m
9$ per square meter for an island which is between 50000 – 99999m
7$ per square meter for an island which is between 100000 – 499999m
2$ per square meter for an island which greater than 500000m

Also in the works are arrangements to lengthen the period of rent for resort islands from current 35 years to 50 years which has been a persistent demand by resort owners for quite some time.

However these arrangements still will need the approval of the majlis to be passed as law and it remains to be seen how much of a hurdle these measures will go through. Critics of the measures point out that the failure of latest batch of new islands given to be developed as resorts are really the problems of the developers and that the government does not need to lengthen the years by which the resorts are rented out. Resorts owned by Universal which were developed in the first batch of resorts will do lots of lobbying the majlis members to secure another 15 years and its nobody’s guess. The length of resort rent initially was 20 years which was raised to 25 again and still later raised to 35 years by resort owners pressuring the government. It has nothing to do with the wellbeing of resorts or tourism industry or workers but what it had was greed ā€“ plain and simple. The resort owners do not want to let go off their resorts easily and want to keep the property in family business forever.

click here to read the story is also in Haveeru


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