The government has planned to charge a dredging fee at sites which are being reclaimed for commercial purposes.
The government has planned to charge a dredging fee at sites which are being reclaimed for commercial purposes.
As reported in Mihaaru News, this has been included in the Fiscal Strategy Report. As per the report, charging of the fee would be in effect from January 25, 2025.
Once in effect, a fee will be charged on sites where land is being reclaimed for resort development and other businesses. As currently planned, USD 2 will be charged for every cubic metre of sand.
This fee is being charged as sand is a natural resource which takes a long period of time to form. The move also aims to encourage businesses to adopt more environmentally friendly methods.
The State will also receive MVR 260 million annually through the charging of this fee, estimates indicate.
In addition to the dredging fee, the government has numerous other plans also in place for increasing revenue.
They also plan to adopt a 'Destination Principle' in the charging of GST, and to increase Airport Development Charge and Green Tax.
The government is also taking measures towards cutting down State expenditure. This year's budget, too, includes plans to change from blanket subsidies to targeted subsidies. Aasandha spending will also be brought down.
Although these actions have not been implemented yet, the government said that some of these efforts will commence in the coming month.
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