Tax breaks for businesses to transform economy in Addu City

One of the islands being reclaimed for tourism purposes in Addu City. | Photo: The Times of Addu

The government has announced that it is working to give tax breaks to businesses operating in the city to bring about a major change in the economy of Addu City.

Presidential Policy Secretary Ahmed Hamdan tweeted yesterday that all economic rounds cannot produce results unless they turn together.

Adding land to Addu City, building roads, developing the airport and creating more islands for tourism are going on simultaneously, he said.

“The completion of the government-invested projects will add about 7,000 beds to the existing 1,528 beds (including Shangri-La). The existing bed capacity will be increased more than four times. Besides, the government is doing what it takes to provide tax concessions to businesses operating in Addu City to help change the tourism as well as the entire economic landscape in Addu,” he said.

“The government has given the loan under the shareholder agreement to resolve the issue of Shangri-La, which has been ignored by any previous government,” Hamdan explained.

He said that in addition to what has been done to support the existing resorts in Addu, the government has decided to invest in the city’s tourism industry.

Three 8.3-hectare islands and two five-hectare islands are being developed to develop the resort, he said.

“The government is doing the leasing of the islands when they are completed,” he said.