President Muizzu Reveals Plan for Tax Reforms to Empower Local Councils

In a bid to bolster the autonomy and financial stability of local councils, President Dr Mohamed Muizzu has unveiled ambitious legal reforms aimed at redirecting a portion of tax revenue from key economic sectors to grassroots governance bodies.

During a rally in V. Keyodhoo, part of his ongoing tour of central Maldives, President Muizzu emphasised the imperative of empowering local councils, casting it as a cornerstone of his administration’s agenda.

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“A boost in income for councils will pave the way for enhanced direct services to the people,” declared President Muizzu, underscoring the significance of bolstering financial resources at the grassroots level.

Central to his proposed reforms is an amendment to the Decentralization Act and the Tourism Act, which would mandate a certain percentage of Tourism Goods and Services Tax (TGST) generated from guesthouses and other local tourism establishments to be allocated to local councils.

“In the future, the laws will be revised to have a specific percentage of revenue earmarked for local councils,” President Muizzu affirmed, highlighting the transformative potential of such measures in alleviating the fiscal strain on councils and streamlining the provision of public services.

However, President Muizzu cautioned that the realization of these reforms hinges on parliamentary approval. “We can only get these things done if we get a Parliament that cooperates with us for the welfare of the people,” he stressed, urging voters to elect pro-government candidates in the upcoming parliamentary elections to facilitate the implementation of developmental projects.

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