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Discussions ongoing to give 10% tax revenue generated to Councils

Minister of Cities, Local Government and Public Works Adam Shareef Umar has revealed that discussions are underway to amend the laws to ensure island councils will receive 10% of the tax collected from the local tourism sector. The remarks were made by the minister during an event held specialised to five atolls situated in the north of the country.

Observing that President Dr. Mohamed Muizzu has held discussions with 170 Councils within the first five months of his tenure, Minister Adam noted that efforts are underway to address the issues and concerns raised by the Councils and the residents of the respective islands and atolls. The minister highlighted the top priority given to conduct research on decentralisation, while disclosing that the ongoing research is being conducted independently by the Maldives National University (MNU). The research will encompass the extent of implementation of the Decentralisation Act, necessary amendments, as well as the advantages that the Councils and residents derive from its implementation.

Several initiatives have been taken to empower Councils and to establish facilities on islands such that revenue can be generated independently. As such, some Councils have been entrusted with uninhabited islands to be utilised for economic activities, owing to the initiative of allocating uninhabited islands to Councils. Additionally, discussions are underway to ensure Councils receive 10% of the tax revenue generated by the islands, as per the commitment outlined in the government's manifesto.

Furthermore, Chief Executive Officer (CEO) of the Local Government Authority (LGA) Mariyam Zulfa unveiled that opportunities will be open for Councils to submit concerns and opinions to strengthen the works of the Councils to the authority.

The event held jointly by LGA, United Nations Development Programme (UNDP) and International Republican Institute will consist of informative sessions and discussion panels as well.