South Hulhumalé MP Dr. Ahmed Shamheed has warned that the proposed amendment to the Special Economic Zone (SEZ) Act would give foreigners free access to Maldivian land.
Speaking during the parliamentary debate on the amendment moved by Baarashu MP Ibrahim Shujau, which seeks to develop SEZ areas as sustainable townships, Dr. Shamheed expressed deep concern over the bill.
He said the proposed changes would disadvantage existing resort operators and allow foreigners to acquire Maldivian land without adequate compensation to the state. “This is a dangerous amendment,” he said, adding that the bill was designed to benefit large foreign investors while giving the state only a small share of the profits.
Under the proposed amendment, when villas or rooms in sustainable townships are sold on a strata basis, one percent of the sale income will be paid to the state on the first transaction, two percent on the second, and four percent from the third onward.
Businesses in such areas would also enjoy reduced tax rates—five percent for the first 10 years, 10 percent from the 11th to 20th year, and 15 percent thereafter.
Dr. Shamheed cautioned that the bill, under the guise of promoting sustainability, could open the door for large-scale foreign control of land and tourism assets in the Maldives.
Speaking during the parliamentary debate on the amendment moved by Baarashu MP Ibrahim Shujau, which seeks to develop SEZ areas as sustainable townships, Dr. Shamheed expressed deep concern over the bill.
He said the proposed changes would disadvantage existing resort operators and allow foreigners to acquire Maldivian land without adequate compensation to the state. “This is a dangerous amendment,” he said, adding that the bill was designed to benefit large foreign investors while giving the state only a small share of the profits.
Under the proposed amendment, when villas or rooms in sustainable townships are sold on a strata basis, one percent of the sale income will be paid to the state on the first transaction, two percent on the second, and four percent from the third onward.
Businesses in such areas would also enjoy reduced tax rates—five percent for the first 10 years, 10 percent from the 11th to 20th year, and 15 percent thereafter.
Dr. Shamheed cautioned that the bill, under the guise of promoting sustainability, could open the door for large-scale foreign control of land and tourism assets in the Maldives.
