The Maldives government on Tuesday submitted an amendment to the Tourism Act, proposing to shorten the payment period for tourism land lease extensions from two years to six months.
The bill, submitted on behalf of the state, sponsored by Dhangethi MP Abdulla Rasheed, proposes amendments to Article 9 of the Act.
The law currently states that the payment for lease extensions of up to 50 years shall be settled within two years, but should the amendment become implemented eventually, the period will shorten to six months.
The relevant parties that owe this payment within six months will be required to pay USD 100,000 for each year of extension. Those who agree to settle the payment over a period of more than six months will be required to pay USD 200,000 for each year of extension.
The parties that settle USD 500,000 within the six months will get an extension on their lease payment period and pay USD 10,000,000 for any extensions beyond this.
The new amendment also requires lessees to settle all outstanding lease payments, fines, taxes, and other relevant fees owed to the state. This, however, does not include the lease payments and fines extended through agreements with the Ministry of Tourism.