The government is set to introduce a dredging fee for commercial sites, effective 25th January next year. Local media reports state the government will impose a charge of $2 per cubic meter of soil dredged from commercial sites, including resorts and other businesses.
According to local media outlet ‘Mihaaru”, the government has included this new initiative in the latest fiscal strategy report. The authorities acknowledge that sand is a finite natural resource that takes several days to form. By introducing this fee, the government aims to encourage businesses to embrace more environmentally sustainable practices.
Anticipated to yield approximately MVR 260 million annually, the new fee will contribute to the government’s overarching strategies for boosting revenue. Beyond the dredging fee, the government has outlined several additional fiscal measures, including a shift in the Goods and Services Tax (GST) to a destination principle system and hikes in the airport development charge and green tax.
The government is gearing up to implement further revenue-enhancing and expenditure-cutting actions in conjunction with these measures, including scrutinising subsidies and reducing spending on Aasandha. However, specific steps have yet to be taken. The government has hinted at unveiling additional details and actions related to these measures next month.
