Committee approves forex bill without MATI's recommendation
The bill will likely be asked for a final vote in parliament on Thursday.
The Finance Committee of the Parliament on Wednesday approved the Foreign Exchange Bill today, without reducing the requirement for resorts to exchange dollars to rufiyaa from 20% to 10%-15% as requested by Maldives Association for Tourism Industry (MATI).
During the session, representatives from the Maldives Association for Tourism Industry (MATI) were invited to provide their views in a confidential meeting. The committee’s final approval of the bill excluded key amendments requested by MATI.
The bill, drafted by the Maldives Monetary Authority (MMA) on behalf of the government, introduces options for resorts, guesthouses, hotels, and safaris to either:
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1-
Exchange $500 per tourist.
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2-
Exchange 20% of their gross monthly income in dollars.
The Finance Committee included a provision allowing resorts facing financial difficulties to request a reduction in the 20% revenue requirement. Resorts must demonstrate their financial hardship to the MMA to qualify for this relief.
The committee also revised the age exemption for children, increasing it from 10 years to 12 years.
The bill stipulates that non-tourism businesses earning more than $15 million annually in foreign currency must exchange 20% of their income.
For guesthouses and safari vessels in residential areas, categorised as Category-B establishments, the bill reduces the dollar requirement to $25 per tourist. This is a significant adjustment from the current rule, which requires guesthouses, city hotels, and safari vessels with more than 50 rooms to exchange $500 per tourist.
The bill will likely be asked for a final vote in parliament on Thursday.
