Gov’t to allocate TGST portion from tourist facilities, to local councils
The financial empowerment of island councils would ease the strain on the central government
President Muizzu speaking to residents of Keyodhoo island
The government is to allocate a portion of Tourism Goods and Services Tax (TGST) received from local tourism establishments in outlying islands, to their respective local councils.
This was announced by President Dr. Mohamed Muizzu, while speaking to residents of Keyodhoo island in Vaavu atoll last week.
Taking the podium at the meeting, the president revealed that his administration plans to propose amendments to the necessary laws to allow the allocation of a portion of the TGST received from tourist facilities to local councils.
Highlighting that his administration would propose law amendments to facilitate a portion of TGST paid to Maldives Inland Revenue Authority (MIRA) being directed to individual local councils, the president shed light on the significance of amending laws to facilitate tax portions from main industries being directed to local councils instead of all tax revenue being collected by the central government through its collecting agency.
Further, he stated that the main purpose of this change is to bring meaningful decentralization by facilitating ways for island communities to directly benefit from the revenue.
Muizzu noted that the financial empowerment of island councils would ease the strain on the central government.
Shedding light on plans to conduct a land reclamation project in Keyodhoo island within the year, the president announced that the island has been included in the megaproject to develop waste management facilities on several islands under the Ministry of Environment and Climate Change.
In addition to this, he pledged to provide a solution to concerns regarding the island’s harbor development project, build a four-story building for the school, and build a children's park for Keyodhoo Island.
