The Ministry of Finance has asked local councils to deposit all revenues generated by local councils throughout the country, through uninhabited islands and other income-generating facilities under the councils, with Maldives Inland Revenue Authority (MIRA).
The Ministry posted a Circular to all the local councils to this effect on the 8th of last month. The Circular, signed by Minister of Finance Abdullah Jihad, stated that the revenues in question were due to the State under the law and that the money should therefore go to MIRA.
The decision was made in pursuance to Financial Circular 2011/10.
According to the new directive, all the revenue generated by local councils from various charges and fees levied on road vehicles, uninhabited islands, harbor fees, fees charged under Partnership Act, and all other such fees within the areas under their authority should now be handed over in full to MIRA.
“Please do send the revenues to MIRA in accordance with the Financial Circular issued on 31st May 2010. And all such revenues received by the councils and not yet deposited with the MIRA should be sent by 29th November 2012”, read the Circular.
Speaking at the Budget Committee of the People’s Majlis, members of City Councils have expressed concern. MPs belonging to the opposition have described this new move as “something done by the government in order to disempower the local councils”.