New Transport Law to Redirect Vehicle Fees Toward Solving Male' Traffic Congestion

Vehicle registration fees collected under the newly enacted Land Transport Act will be redirected into a dedicated fund to tackle chronic traffic congestion in Male', Attorney General Ahmed Usham announced. The move aims to ensure that funds are specifically utilized for infrastructure and safety solutions in the areas where vehicles are registered. Speaking at the eighth edition of the “Ahaa” forum—a government platform for public inquiries—the Attorney General explained that the previous Land Transport Act had been in place for 15 years, creating significant hurdles in modernization. He emphasized that the new legislation is designed to address the immediate and severe transport challenges faced by the public, particularly in the capital. Under the previous system, fees from vehicles registered in Male' were deposited with the Male' City Council. However, Attorney General Usham asserted that these funds were not effectively utilized by the council to mitigate the city's traffic problems. To prevent this, the new law mandates that these fees be placed in a specialized fund managed by a Road Safety Council, which consists of relevant government ministers. The policy shift has sparked a political dispute. Male' City Mayor Adam Azim has alleged that the specific provisions regarding the capital are an attempt by the central government to strip the Male' City Council of its existing powers and financial autonomy. Despite these concerns, the Attorney General maintained that the primary objective is operational efficiency and public benefit. He expressed confidence that as the Land Transport Act is fully implemented, the tangible improvements in traffic flow and road safety will justify the restructuring of fund management. The new law came into effect last Thursday, marking a significant shift in how the Maldives manages urban mobility and transport revenue. The government expects that the oversight of the Road Safety Council will provide the transparency and strategic direction necessary to resolve Male's long-standing congestion issues.