Saleem Proposes Tax Exemptions for Low-Tourism Areas

Hoarafushi MP, Ahmed Saleem, presented a proposal to amend the Tourism Act Amendment Bill, suggesting a ten-year tax exemption for low-tourism areas. 

The proposal, put forth today, aimed to address the disparities in the tourism industry’s development across the country.

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The Tourism Amendment Bill, initially introduced by Kendhikulhudhoo MP Ahmed Easa on behalf of the government, was an item on the agenda during the parliamentary session.

Saleem emphasised the predominant growth of guesthouse businesses in the Male’ region, which already hosts numerous resorts. He called for an examination of the factors contributing to this trend, asserting the necessity to diversify tourism beyond the confines of the Male’ region.

In line with this perspective, Saleem recommended a decade-long suspension of taxes in the northernmost and southernmost regions of the country, where tourism is less established. 

Furthermore, he proposed a 50 percent reduction in other tourism-related taxes for resorts in these areas during the same ten-year period.

Drawing attention to the development of airports in various parts of the country to facilitate tourism, Saleem raised concerns regarding high travel costs and their impact on the sector’s growth. He, therefore, suggested a tax exemption for areas characterised by lower tourism activity.

The government’s proposed amendment, on the other hand, seeks to eliminate the Goods and Services Tax (GST) on charter bed rentals and introduce a tourism real estate tax as an alternative measure.