Tourism Minister: Decreasing land rent will increase tax revenue

Tourism Minister Dr. Abdulla Mausoom responds to questions at the Parliament on May 16, 2022. (Photo/People's Majlis)

Tourism Minister Dr. Abdulla Mausoom has stated that a decrease in the rent of islands leased for tourism purposes will lead to an increase in tax revenue.

Responding to a question posed by Velidhoo MP Mohamed Abdulla at today’s parliamentary sitting – Minister Mausoom said that the biggest source of income for the state at present is through taxation.

 “A taxation system was introduced to the Maldives during your (Parliament Speaker Mohamed Nasheed) administration. This taxation system is now utilized by the state for income,” he had said.

Speaking further, Mausoom stressed that an increase in land rent would be more detrimental to the government than beneficial.

“In the long term – what would be more beneficial for the government is increasing in tax revenue by letting businesses thrive,” he had said.

Minister Mausoom said that the purpose of the amendments proposed by the government to the Tourism Act was to decrease losses incurred by resorts due to the implementation of minimum wage.