MDP: Tax will destroy guesthouse business

Opposition, Maldivian Democratic Party (MDP) has said that introducing green tax to guesthouse business, the same rate as up-class resorts would damage and destroy Maldives guesthouse business, which is still at its infant stage.

MDP released a press statement on Tuesday, in which it said that MDP government introduced the guesthouse policy and developed the business because of immense benefit to ordinary citizens of the country.

And that the bill proposed by the current government would have a severe negative impact of the business.

The bill was proposed on behalf of the government by People’s Majlis Majority Leader, Vilimale’ MP Ahmed Nihan Hussain Manik.

It calls for USD 6 to be taken from tourists staying at guesthouses per night, effective the day it is passed by Majlis and then ratified by President.

The bill is currently under review by People’s Majlis Economic Affairs Committee.

The Committee has voted on lowering the rate of green tax from guesthouses to USD 4 per night, and on ensuring that guesthouse business is given time to prepare for the change by making October 1 the day the law becomes effective.

MDP said that no rules or regulations had been set up to ensure that money from green tax was collected and utilized for environmental projects. And that there was no way to tell if money collected so far as green tax had been used for environmental projects.

Guesthouse Association has also said that green tax would bring the entire business to a standstill.

MDP also expressed concern over the bill to amend Tourist Act so that islands, land, and lagoons can be leased for tourism without a public announcement, saying that it would increase opportunity for corruption.