Amendment to SEZ law passed in one day despite criticism, exactly as gov’t intended

The bill amending the Special Economic Zone (SEZ) law, allowing government-designated areas to be developed as sustainable townships, was rushed through the Committee of the Whole House and passed within a single day, ignoring widespread criticism and aligning fully with the government’s agenda.

The administration’s proposed changes to the SEZ law have drawn scrutiny for what many see as an attempt to grant tax exemptions to 11 resorts and 22 uninhabited islands. The move has raised alarms among opposition members, industry professionals, and some within the tourism sector, who warn that it could create an uneven playing field and erode public revenue.

During Tuesday’s committee meeting, government-aligned lawmakers used their majority to swiftly pass the bill, rejecting all proposed amendments. MP for South Galolhu constituency Meekail Ahmed Naseem’s motion to extend the review deadline was defeated with 53 votes against and only nine in favor. His second proposal, to invite relevant stakeholders for consultation, met a similar fate, rejected by 54 votes to nine.

The amendment, submitted by MP for Baarah constituency Ibrahim Shujau on behalf of the government, was first debated on October 21 and accepted by the People’s Majlis the following day, raising further concerns about the speed and lack of scrutiny in the legislative process.

Amid these developments, MP for Hoarafushi constituency Ali Moosa successfully introduced a clause requiring a four percent property transfer tax on long-term leases of villas or rooms in resorts or integrated tourism projects within SEZs. This was the only addition to survive the review.

With the ruling People’s National Congress (PNC) backing the changes, the bill was ultimately passed by the Committee of the Whole House with 55 votes in favor and nine against, solidifying the government’s push to reshape the SEZ framework despite persistent objections.