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Bill submitted allowing fining foreign investors up to MVR 1M for violations of law

FI

Published

7 months ago

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Abill has been submitted to the parliament which proposes a fine up to MVR 1 million for foreign investors found in violations of laws.

The objective of the bill, submitted by Manadhoo MP Ahmed Haroon, on behalf of the government, is to create a legal framework that delineates sectors in which foreign investors are permitted to invest within the Maldives and to establish regulations on the issuance of licenses for such investors alongside the protections and safeguards they are entitled to.

It is also aimed at establishing the circumstances under which such investments can be expropriated by the state and the policies surrounding compensation in such a case. Furthermore, the bill also aimed to set down policies on the issuance of licenses for foreign contractors.

As per the bill, a foreign party can only carry out any investment-related work in the Maldives after seeking the license as stipulated under this act, and only after the approval for the foreign investment and the license has been received.

The record of investors awarded licenses shall be maintained by the relevant Ministry in accordance with regulations formulated once this bill becomes law.

While the Ministry reserves the right to withhold or nullify any such license issued – grounds for such actions may include bankruptcy of the investor, failure to carry out any work from one year of obtaining the license, or carrying out a work contradictory to the work permitted to actually undertake.

According to the bill, if the Ministry revokes an investor’s license, they will still need to settle all payments owed to the state and pay the salaries of all staff employed in relation to the investment.

However, the bill includes a provision, as part of the protections and safeguards investors are entitled to, which stipulates the state cannot expropriate any investment without plausible cause and without adequately compensating the investor.

The bill prohibits foreign investments from the following;

Failure to comply with instructions from the ministry regarding violations of the license within the stipulated timeframe without probable cause
Submitting false information to acquire a foreign investment license
Under the bill, the investor will be provided a stipulated timeframe to adhere to instructions from the ministry regarding violations of the law. If the investor fails to comply with the instructions, they will be penalized based on the severity of the violation.

Penalties stated in the bill include;

If found to have been operating an unpermitted business, a fine no greater than 30 percent of the whole investment can be imposed
If found to have submitted false information to acquire the foreign investment license – can impose a fine between MVR 100,000 and MVR 1 million
Can impose a fine between MVR 100,000 and MVR 1 million for any violation of the law, based on the severity of the violation; or a fine amounting to 10 percent of the investment.

Source(s): sun.mv

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Business

CWEIC office to establish in Maldives, Janah as Chair

FI

Published

2 days ago

on

16/05/2024

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Commonwealth Enterprise and Investment Council (CWEIC) has announced decision to establish its office in the Maldives, and appoint President Dr. Mohamed Muizzu’s Principal Advisor Mohamed Ali Janah as its Country Chair.

CWEIC in a statement on Thursday, said the office will be established to connect the Maldives government with international investors and businesses.

The Maldives hub office of CWEIC will play a vital role in seeking prospective investment opportunities from all 56-member nations of the Commonwealth. The office will also enhance strategic alliances and partnerships between these countries and the Maldivian government.

Veteran entrepreneur, Janah boasts of over 30 years of business relations with the Middle East.

Source(s): sun.mv

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Business

Dubai company awarded the development of SEZ

FI

Published

6 days ago

on

12/05/2024

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An agreement has been signed by the Maldivian administration with UAE’s International Free Zone Authority (IFZA) to develop Special Economic Zones (SEZ) in the Maldives.

The agreement, officially co-signed by Minister of Economic Development and Trade Mohamed Saeed and IFZA Chairman Martin Gregers Pedersen during a special ceremony, marks a significant milestone in economic development.

Speaking at the ceremony, Minister Saeed emphasized the timeline for finalizing the agreement, committing to reach a consensus within the next four months. As part of the agreement, Fonadhoo in Kaafu Atoll will be transformed into a financial hub, featuring a new financial center and a bridge connecting Male’ and Hulhule. IFZA will bear the expenses for these developments.

The Ministry of Economic Development and Trade further highlighted plans for the Economic Gateway project in Ihavandhippolhu, aiming to attract investors with IFZA’s expertise. Addressing the attendees, Chairman Pedersen expressed confidence in the success of the project, underscoring collaborations with investors to further enhance opportunities in the Maldives.

The development of SEZs remarkably aligns with the President Dr. Mohamed Muizzu’s vision to diversify the economy and stimulate financial growth. The Maldivian administration is optimistic about attracting future investments and positioning the country as a desirable destination for business opportunities.

Source(s): PsmNews

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Business

Over USD 713M generated attributing to revenue increasing by 3.7%

FI

Published

7 days ago

on

11/05/2024

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Ministry of Finance has revealed a remarkable surge in the government’s revenue generated as of April 25, which exceeds USD713 million. The latest weekly fiscal report publicised by the ministry indicates that this contributes to a 3.7% increase in revenue in comparison to the revenue of USD693 million, generated within the same period, in 2023.

The fiscal report shows that the revenue comprises USD 596 million in tax revenue, USD116 million in non-tax revenue, and USD3 million in aid received. Tax earnings include import duty, business and property tax (BPT), goods and services tax (GST), as well as earnings from GST. The breakdown of revenue generation includes USD45 million from import duties, USD168 million from BPT, USD330 million from GST, USD24 million from green tax, USD22.6 million from airport service charges, and departure tax.

Expenditures until April 25 totalled USD817 million, with USD629 million allocated to recurrent expenses and USD181 million to capital expenditures. This represents a significant reduction in expenditures compared to the USD244 million spent by the government in 2023, during the corresponding timeframe. Recurrent expenses cover USD207 million for salaries and allowances and USD408 million for administrative work. Meanwhile, capital expenditure primarily encompasses expenses related to structural development.

Source(s): PsmNews

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