SEZ

“In the special economic zones, developers have the right to bring any amount of expatriate workers as well, so we might be able to generate jobs, but if those jobs go to expatriates we are not going to reap the benefit of such development activities,*” 

Dr Azeema – Governor of Central bank (Maldives Monetary Authority, MMA)

  “This is leading the ownership of this country’s resources into the hands of a handful of corporations driven by the quest for short-term power and financial gain. It is not sustainable nor empowering for the Maldivian population*,”

 Salma Fikry, a former recipient of a President’s Award for services to decentralisation,

"Maldives already attracts huge investments and international brands to tourism sector with existing laws. If government wants to attract investors to other industries with SEZ bill, why so many benefits (tax free) to tourism sector? I strongly believe SEZ bill is a tool by resort owners to legally evade taxes".

 Maldivian Economist

*Quote Source: Minivannews. (Article mentioned below)

Tourism minister defends under-fire economic zones bill

Salma Fikry, a former recipient of a President’s Award for services to decentralization, has suggested that the bill works against the spirit of devolved government – shifting power from elected representatives to corporations.

“Corporations don’t work for the public good, they work for corporate profit. Is Adeeb saying he is satisfied with trickle down economics?” she asked.

“This is leading the ownership of this country’s resources into the hands of a handful of corporations driven by the quest for short-term power and financial gain. It is not sustainable nor empowering for the Maldivian population,” continued Salma. read more

Special Economic Zones bill (SEZ): A monster in the making?

Major public concerns on SEZ bill highlighted by "Maldivian Economist" are as follows

1. Government submitted Special Economic Zone bill to Majlis recently. Various benefits to SEZ have been included in the bill. No customs duty. No good & services tax (GST). No business profit tax (BPT). No withholding tax. No land sale tax. No tax on shareholders dividends. Businesses can take land on lease for 99 years. Businesses can own land. No limit on foreign labor employment. And many more.
2. First of all SEZ bill is a poorly drafted bill liky many other bills passed by Majlis. The bill comes with repetitions, unclear terms with room for logic defying benefits to businesses. The intentions are unclear & unjustified.
3. SEZ is all about tax benefits to business. For example, if you develop a resort in SEZ, all taxes are waived off for 2 years. Also employment opportunities for Maldivians won't increase, since there is no limit on foreign employees.
4. Under SEZ bill, President can waive off tourist resorts land tax. Businesses will also have entire freedom on money remittance without any approval or permit from any government authority.
5. Maldives already attracts huge investments and international brands to tourism sector with existing laws. If government wants to attract investors to other industries with SEZ bill, why so many benefits (tax free) to tourism sector?  I strongly believe SEZ bill is a tool by resort owners to legally evade taxes.
6. Main source of Income to government is TGST & BPT. Main source of dollar income for government is TGST & other taxes from resorts. SEZ bill will reduce government's income & dollar income due to tax benefits to resorts. Thus government income will reduce & dollar market being controlled by resort owners