Parliament Pass Foreign Exchange Bill
The parliament today passed the Foreign Exchange Bill which require tourism businesses to exchange 20 per cent of their income in US dollars to Maldivian rufiyaa (MVR).
The bill was passed at the parliament session held today after being reviewed by the Public Accounts Committee. The bill received 56 votes in favour and only 11 votes against.
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The committee had made some amendments to the bill but kept the 20 per cent provision despite calls from the Maldives Association for Tourism Industry (MATI) to reduce it to 10–15 per cent.
During a confidential meeting held yesterday, MATI representatives were invited to present their views on the proposed legislation. However, the committee’s final approval of the bill excluded the key amendments requested by the organisation.
Drafted by the Maldives Monetary Authority (MMA) on behalf of the government, the bill introduces two options for resorts, guesthouses, hotels, and safari vessels to comply with foreign exchange requirements:
Exchange USD 500 per tourist, or Exchange 20 per cent of their gross monthly income in US dollars.
To address potential financial difficulties, the bill allows resorts to request a reduction in the 20 per cent requirement. Resorts seeking this exemption must demonstrate financial hardship to the MMA.
The committee also revised the age exemption for children, raising the limit from 10 years to 12 years.
Additionally, non-tourism businesses earning more than USD 15 million annually in foreign currency are required to exchange 20 per cent of their income.
For guesthouses and safari vessels in residential areas, classified as Category-B establishments, the bill lowers the exchange requirement to USD 25 per tourist. This represents a significant reduction from the current rule, which mandates guesthouses, city hotels, and safari vessels with more than 50 rooms to exchange USD 500 per tourist. The bill is expected to be tabled for a final vote in Parliament today.
