A bill has been submitted to the People’s Majlis to amend the Foreign Currency Act and require Category A tourism establishments to convert 20 per cent of their foreign currency earnings into Maldivian rufiyaa.

The bill was submitted on behalf of the Government by Hoalhudhoo MP Abdul Sattar Mohamed.

Under the proposed amendment, Category A tourism establishments, including resorts, integrated tourist resorts and private islands, would be required to convert 20 per cent of their monthly foreign currency revenue into rufiyaa. The current requirement is based on a rate of USD 500 per tourist per month or 20 per cent of total revenue.

The bill also proposes reducing the requirement for businesses wholly owned by Maldivians to seven per cent of their monthly foreign currency earnings.

It further proposes raising the annual foreign currency revenue threshold for businesses required to deposit their earnings into a bank account from USD 15 million to USD 25 million.

The bill is proposed to take effect from 1 September. It must first undergo committee review before being debated and voted on by Parliament.