Pres plans legal reforms to have tax revenue injected to councils

President Dr. Mohamed Muizzu says he plans on making legal reforms to have some of the tax revenue generated from major economic sectors injected into local councils.

President Muizzu, who is on a tour of central Maldives, made the announcement during a rally in V. Keyodhoo on Thursday morning.

Addressing the rally, President Muizzu described empowering and securing financial independence to councils as one of his administration key priorities.

“A boost in income of councils will advance direct services to the people,” he said.

President Muizzu said that true decentralization cannot be achieved unless part of the state’s revenue goes to local councils.

He said that he plans on amending the Decentralization Act and the Tourism Act to have a certain percentage of TGST generated from guesthouses and other local tourism establishments go to councils.

“In Sha Allah, in the future, the laws will be revised to have a specific percentage of the revenue that goes to MIRA go directly to local councils,” he said.

“It will decentralize and ease the burden on the annual budget councils use to provide public services, facilitating the provision of services from the direct revenue councils receive.”

He, however, said that the changes can only be made through the Parliament.

“We can only get these things done if we get a Parliament that cooperates with us for the welfare of the people,” he said.

He appealed to voters to elect pro-government candidates in the upcoming parliamentary elections, saying that it was crucial for there to be pro-government lawmakers in order for the administration to implement its developmental projects.