PNC Parliamentary Group Leader and Inguraidhoo MP Ibrahim Falah has accused former President Abdulla Yameen of encouraging resorts to defy a newly passed law requiring businesses earning foreign currency to deposit 40 per cent of their monthly income with a local bank.

Speaking at a PNF rally in Fuvahmulah City, Yameen said the 40 per cent requirement would negatively affect the tourism industry and that all resorts should oppose the amendment.

Responding to the remarks, Falah said on social media that Yameen’s call amounted to a direct invitation to break the law. He also criticised Yameen for what he described as contradictory statements and actions.

The amendment, proposed by Hithadhoo South MP Abdulla Sattar and amended by Funadhoo MP Mohamed Mamduh, has been passed by Parliament and is due to take effect from the first day of next month.

The Maldives Association of Tourism Industry (MATI) has opposed the amendment, saying resorts have significant dollar-denominated expenses, including fuel, salaries, service charges, GST, green tax, withholding tax, income tax, rent and foreign-currency loans.

Meanwhile, Maldives Monetary Authority Governor Ahmed Munawwar has said the measure is necessary to address the shortage of US dollars in the domestic market. He said 56 per cent of the dollars deposited with the MMA by foreign-currency earners by the end of last month had been used to service Government debt.