Local Government Minister Adam Shareef Umar has disclosed ongoing discussions aimed at amending laws to allocate 10 percent of local tourism tax to councils.
Speaking at the inauguration of the Local Government Authority (LGA)'s “Fanoalla” seminar, Minister Adam Shareef emphasized the government's commitment to empowering local councils and enhancing their financial capabilities. Highlighting the government's policy of allocating lagoons or uninhabited islands to local councils to increase their revenue, the minister pointed out that several councils have already benefitted from this initiative by receiving such allocations.
Adam Shareef said the government is currently working to amend the legal framework to allow councils to receive 10 percent of the revenue from local tourism.
"Discussions are underway to assign 10 percent of the tax revenue from local tourism to councils. This underscores the government's dedication to council development," Shareef said.
The minister said the government wishes to work closely with councils to carry out development projects. In this regard, President Dr. Mohamed Muizu has been consulting the councils for the past five months, meeting with more than 170 councils during this period.
Furthermore, Minister Shareef revealed ongoing research conducted by the Maldives National University to explore avenues for bolstering local councils' capacities.
Addressing the ceremony, LGA's CEO Mariyam Zulfa said the councils will have the opportunity to submit their requests to the relevant authorities and hold discussions.
