Maldives Waives Import Duty on Raw Materials for SMEs for Five Years

President Dr. Mohamed Muizzu has announced that the government will waive import duties on raw materials used by small and medium enterprises (SMEs) for a period of five years, starting from January 1, 2027. The announcement was made during the award ceremony of the “Dhivehinegge Ufaa’ dhinthirigai’ ma’urazu” exhibition. Speaking at the event, the President noted that a significant number of small and medium businesses are active in this sector and highlighted the government’s focus on expanding the role of SMEs in production. He stated that a complete list of eligible items will be prepared, and items on that list will be subject to a 0% import duty rate. In addition to the duty exemption, the government has decided to raise the threshold for GST registration to 1.5 million rufiyaa. Businesses that are owed money by the government will also be allowed to offset that amount against their tax liabilities. President Muizzu said that the government aims to increase the manufacturing sector’s contribution to the country’s GDP to 15% by 2030. Earlier this year, the government also amended the Employment Act to exempt SMEs from quota fees, easing their operational challenges. The President emphasized that these measures are part of broader efforts to support small and medium enterprises and reduce the obstacles they face.