Plastic Bag Levy Revenue Drops 40% as Maldives Cuts Consumption

The Maldives' landmark plastic bag levy is successfully reducing consumption, with government revenue from the charge falling by 40 percent in early 2026. According to new data from the Maldives Inland Revenue Authority (MIRA), the state collected $43,259 from the surcharge in the first two months of the year, a sharp decline from the $72,187 collected in the same period of 2025. The figures indicate the policy is achieving its core environmental goal: reducing plastic reliance. Officials clarified that the drop in revenue is directly linked to a decrease in the volume of plastic bags being imported into the country. Tax authorities noted this outcome aligns with long-term financial forecasts for the measure, which anticipated a steady erosion of plastic bag use. Implemented as a key part of the national Waste Management Act, the levy mandates a fee of $0.13 per bag at the point of sale. The regulation, which came into effect on 18 April 2023, requires all commercial entities registered for the Goods and Services Tax to collect and remit the full fee to the state. While designed to curb single-use plastic, the policy maintains specific exemptions for essential needs. The fee is not applied to bags distributed by duty-free shops, those used to carry fresh, unpackaged fish, or bin liners issued for waste disposal by relevant authorities. This balance aims to support public health and key economic sectors while driving a broader shift toward sustainable alternatives.