Himeyn-ingilaab calls our Maldivian business community a group of outmoded thieves - a group of people that have run business evading taxes - shameless thieves committing acts of piracy! I have great admiration for the work Himeyn did during the run up to the election. But this time I’m totally clueless as to the basis for all this ignominious name calling and recrimination.
Sometimes to prove a point we become unreasonable and resort to baseless attacks. We forget to take stock of the actual ground realities. Is there any government, anywhere in the world, that is able to stay away from the influence of the powerful oligarchs? The businesses in the industrialized countries pay taxes to their governments, not because they are any more God-fearing, or have higher moral standards than we Maldivians do. They pay taxes only because their countries have the appropriate legislative and regulatory frameworks to compel them to do so. Even after having these systems in place for over a hundred years, most of them are always on the look out for any avenue that would give them legitimacy to pay even one less dollars in taxes. We in the Maldives haven’t been able to develop the legislative framework and the enforcement mechanism for taxes. So, I don’t see any way we can squarely put the blame on the business community for not paying or developing a tax regime. The government, business community, the civil society, the Rayyithun - all of us together are responsible for this.
As for the extension of resort leases, I don’t see much of a problem with that. On the contrary, I think, this is a must if we are to remain competitive both as a lucrative investment destination and as an attractive tourist destination. Let’s face the facts – we have to understand that we are far from being an attractive investment destination even by developing country standards. The only thing we need to do, while we work on the extension of the resort leases is to make sure that when we give the resort owners a deal, we give them a deal that’s fair to even to the most destitute single mother living in the most dilapidated household in the most remote island in the Maldives (sorry, just borrowing a phrase from Himeyn). The fairness of this deal could be ensured by increasing the lease rentals or by implementing a bed tax, a GST on tourism sales or a corporate profit tax. I recently read an article somewhere that says that over 80 out of the 89 odd resorts currently in operation, still have USD4000 or less as annual lease rentals when the going market rate at the more recent rounds of bidding are over USD20,000 per bed per year. These are the things that we need to be working on instead of vilifying our business community and calling them a bunch of unprincipled pirates filching money out of our destitute people. After all it is only natural that any profit-maximizing business should try and lay hands to every extra dollar possible.
39 comments:
himeyn ingilaabey kiyaigen faadu faadu vaahaka liyan thee dhen kaaku
u must be a lackey of one of those resort owners.
himeyn ingilaab is a phoney site. it doesnt deserve note.
Have all the necessary groundwork been done for taxing and are all things to ensure this is fair like you prescribe in place?
What about all the social injustice talk which was brought during the campaign, has any bill been passed for that?
thnks for ending my wait for a reasonalble reason for the bill.
Y not allow the government to get something from the resort owners bargaining in an even deal. wats so wrong in dat.
"Is there any government, anywhere in the world, that is able to stay away from the influence of the powerful oligarchs?" Is it a justification of the influence the oligarchs are currently exerting on our government? When you say that you have no problem with extending the lease period to 50 years, provided that it is a fair deal to the destitute single mother living in a poor island, you have to remind yourself that this mechanism of taxing the oligarchs is not in place when the government has started this venture to extend the resort leases. You are an economist. You do your math and find out the ROI period for the resorts in the Maldives. Do they need 50 years for investment recovery and for lucrative profits thereafter? Of course all investors will be happy of such a deal. They will be happier if its 100 years. But this also means limiting the opportunities for aspiring new businesspeople as we have a very limited supply of islands. We don't want all islands to be made into tourist resorts. We have to think of resource management and environmental factors too. Even if the government levies taxes, extending lease period to 50 years means allowing the current resort owners to get richer, and discouraging new people from getting richer.
why did everyone shouted their asses off when maumoon got the deal to sell out the sea? what is wrong with that?
the current practice is to give islands for 25 years, and if the investment is over US10 million its 35 years. The resort owners have over the years developed smart ways of circumventing this lease period thing. Can any one of you tell me - is there any way that the govt can take back any resort of M.U Manik or Champa Afeef or Gasim. whether we give them a 50 year lease or not their resort lease holds will always belong to them.
@anonymous 1:16 - I dont think I have written anything overly derogatory about anyone. I'm only expressing my views here.
@ anonymous 2:39 - i dont have ownership stakes in a resort.
@ anonymous 3:30 - I'm sorry but I'm not, trying to justify the influence of our oligarchs on the govt. Im only stating an inevitable truth. As anonymous 7:04 says, even in the absence of a mechanism to lease resorts for 50 years, they will make sure that they hold the resorts. So, we might as well try and provide them a means to do that through a proper channel and not through the back door by paying the tourism minister a few million dollars. (dont you wonder how all our previous Tourism ministers, of course, with the exception of Musthafa luthfy, retired filthy rich?) And by providing them a proper legitimate channel with built in mechanisms for taxation and royalties etc, we could ensure that the destitute single mothers of this country also benefit from the lease extension.
@naimbe
the government has not produced a taxation plan along with this attempt to increase lease of resorts. so what they are trying to do is not helping that destitute mother in the island. they are trying to help that resort owner. and the solution to bribery and illegal methods used by resort owners is not provide them a legal mechanism, but strengthen our judicial system and anti-corruption agencies.
@anonymous 4:45 - you are right. but then naimbe also saying that the govt needs to have the taxation plan and other means to help our destitue single mothers in the islands.
Naimbe, u say that u dont moderate comments but then here i see that u have deleted a comment. any particular reason?
are you trying to prove something on behalf of your friends at BIG and other places....
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