IMF: Budget is appropriate, we support for Green Tax

International Monetary Fund (IMF) has said that they were contented about what was being included in the budget projected for the year 2015 and they support the decision of the government to introduce Green Tax next year.

In a press conference held on Thursday at auditorium of Regional Bank by IMF team, which has arrived in Maldives to review the economy of Maldives, Head of the team, Alison Stuart said that expenses and revenue has been included applicably in the projected budget for 2015 in order to decrease the physical deficit.

She said that expenses of Maldives needed to be decreased and the most appropriate action for that was to target on subsidies. She added that although subsidies given at preset did not discriminate rich and poor in the society, subsidies have to be based on the economic status of the people.

Allison noted that employees hired for long-term to public sectors must be made permanent and it was important to minimize expenses and implement Wage Bill accordingly. She said that if anyone doesn’t have to pay tax in SEZ framework, it has to be specified in the framework and that the framework of bill must be transparent.

Alison said that economy of Maldives has become stable, revenue from Tourism of Maldives has been increased and relationship between Maldives and foreign investors has been strengthened.

The government has submitted a Bill of Amendment to the Tourism Act to the parliament to allow the imposition of $6 per tourist per day as Green Tax, on tourists staying at hotels excluding guesthouses in the Maldives, and a bill has also been summited to empower MIRA to take that tax.

The President’s Office said that the purpose of introducing a Green Tax was to establish a proper waste management system, as the present waste situation in the country has adverse effects on tourism; and to make the local tourism sector more environmentally friendly.