The island or city council will now be able to set the minimum lease payment for non-residential land plots as per the new amendment to the law.
Previously, the minimum lease payment was set by the Planning Ministry and Land Valuation Committee for all islands and cities. Moreover, the minimum lease term can only be set after the Planning Ministry’s approval.
However, the new amendment states that minimum lease payment will be set by an island council or city by referring to its land-use plan. The island or city council should ensure that the minimum lease payment should not be lower than the rates set on the land-use plan and should be published in the Gazette.
Moreover, the island or city council can revise the minimum lease payment once every two years based on the productivity and development of the island or city.
Decentralization is one of the main pledges of the current administration with many laws put forward to grant more administrative power to local councils.
