The Parliament on Thursday approved the Foreign Exchange Bill, which requires tourism-related businesses and entities with significant foreign currency earnings to deposit all such income into banks as well as requiring the compulsory exchange of a portion of these deposits.
The bill was passed today during the final sitting of the ongoing parliamentary session, with 56 members voting in favour. All 11 opposing votes came from the opposition Maldivian Democratic Party (MDP) members.
The bill was passed with minimal amendments during the committee stage. The changes included raising the exemption age from 10 to 12 years, revising the phrases of certain articles, and granting the Maldives Monetary Authority expanded powers to access information.
As per the bill, Category A resorts will be required to exchange USD 500 per guest arrival or 20% of their monthly income. Meanwhile, Category B establishments, including safaris, guesthouses, and hotels, will be required to exchange USD 25 per tourist or 20% of their monthly income, starting next year.
Non-tourism businesses will only be required to deposit and exchange foreign currency if their revenues exceed $15 million in the previous year. These businesses will also be obligated to exchange 20% of their monthly income.
The Public Accounts Committee met with the Maldives Association for Travel Industries (MATI) and the Maldives Association of Travel Agents and Tour Operators (MATATO) while working on the bill. However, their recommendations were not included in the committee's final report.
Although not reflected in the report, MATI had requested for a reduction in the foreign exchange rate from 20% to between 10-15%, according to newspaper reports quoting the association. Despite this request in parliament, the Maldives Monetary Authority (MMA) stated that the resorts have agreed to the figures outlined in the bill.
