Democrats pledges to 3-year TGST waiver for regional hotels
Ilyas also proposed 50% deduction of TGST payable for another seven years.
The Democrats will waive off Tourism Goods and Services Tax (TGST) on resorts and guesthouses in the north and south of the Maldives for the first three years of their operations, the party's presidential candidate and Hulhudhoo MP Ilyas Labeeb said Saturday.
Ilyas was speaking to supporters at The Democrats party camp in Feydhoo, during his campaign tour to Addu with party founder and Parliament speaker Mohammed Nasheed.
"... we need economic activities in the north and south of the country. Tourism is one of the easiest things to do in the Maldives," he said.
Ilyas, however, pointed out that investors were finding it difficult to run tourism businesses in the southern atolls and promised to come up with policies that would make it easier for businesses.
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TGST levied on resorts and guesthouses in the southern and northernmost parts of the country will be waived for the first three years of operation
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50% deduction of TGST payable for another seven years
"The purpose is to promote tourism in these region. With tourism, more business activities will take place; to give space to all these businesses," he said.
Ilyas also mentioned the proposed changes to boost tourism and business under The Democrats' decentralisation policy. They include:
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Reform the taxation system and provide for 50% of GST collected from businesses in the islands to be paid to the respective island council
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Increase the revenue paid to councils as land rent from 40% to 50%
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Green tax revenue from businesses in the island should go directly to the councils
The opening of the long-closed Shangri-La Villingili Resort and Spa will be the first thing The Democrats government will do, he said. The resort can be opened within two weeks at most and the meetings with shareholders will not be concluded until the issue is resolved, he said.
Shangri-La Resort closed in 2020 with Covid. The resort, which employed many people from Addu, has not been opened for three years. Many people have lost their jobs and tourism has declined.
The closure of Shangri-La Resort in 2020 due to Covid-19 has led to the loss of jobs for many of its workers. Many residents of Addu have expressed concern over the fact that the resort has not opened for a long time.
In January, President Ibrahim Mohamed Solih said that Shangri-La's Villingili Resort will reopen in August or September.
President Solih said in June that the documents required to release 30% of the government's stake in Shangri-La's Villingili Resort have been handed over to the company that runs the resort.
The government has decided to give up its 30% stake in Addu Investments Private Limited, which operates the resort.
Credible sources earlier told Atoll Times that Reollo, which operates several resorts as well as Manta Air and Dh. Kudahuvadhoo airport, have agreed to buy the resort.
Shangri-La's Villingi Resort:
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Opened - 2009
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Size - 50.6 hectares
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Bed - 284 beds
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Rent expires - 26 February 2105
