President Muizzu Unveils Plan for Legal Reforms: Tax Revenue Boost for Local Councils

March 7, 2024 6:56 am

President Dr. Mohamed Muizzu has revealed ambitious plans to enact legal reforms aimed at redirecting a portion of tax revenue generated from major economic sectors into the coffers of local councils. The announcement came during a rally in V. Keyodhoo as part of the President’s tour of central Maldives.

Addressing the gathering, President Muizzu outlined his administration’s commitment to empowering local councils and ensuring their financial independence. He emphasized that enhancing the income of councils is a pivotal aspect of delivering direct services to the people, thereby prioritizing decentralized governance.

President Muizzu underscored the necessity of true decentralization by allocating a portion of the state’s revenue to local councils. To achieve this, he outlined plans to amend the Decentralization Act and the Tourism Act. The proposed amendments aim to designate a specific percentage of the Tourism Goods and Services Tax (TGST) generated from guesthouses and other local tourism establishments directly 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,” President Muizzu affirmed. This strategic move is expected to alleviate the financial burden on councils, enabling them to efficiently provide public services by utilizing the direct revenue received.

However, President Muizzu acknowledged that these changes require parliamentary approval, urging citizens to elect pro-government candidates in the upcoming parliamentary elections. He stressed the importance of a cooperative parliament to implement developmental projects that cater to the welfare of the people.

In his appeal to voters, President Muizzu highlighted the critical role of pro-government lawmakers in facilitating the administration’s vision for comprehensive development and urged citizens to contribute to this collective effort through their votes in the upcoming elections.

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