President Muizzu Announces Major Tax Relief for Small and Medium Enterprises

President Dr. Mohamed Muizzu has decided to grant substantial tax relief to small and medium enterprises (SMEs) in the Maldives, he announced at the Maldives Expo 2026 award ceremony. The President stated that a complete list of raw materials imported by SMEs will be compiled, and from January 1 onwards, a zero percent duty rate will be applied to these materials for a period of five years. Additionally, the government has decided to implement three main concessions for micro, small, and medium enterprises. These include a mechanism allowing businesses that have not received payments from the government to offset the outstanding amount against taxes owed, and raising the GST registration threshold to 1.5 million rufiyaa. The threshold will be increased from January 1, meaning companies that owe less tax than what the government owes them will not have to pay that tax; the government will pay the remaining balance. President Muizzu said the government's goal is to increase the manufacturing sector's contribution to GDP to 15 percent by 2030. To achieve this, amendments to the Employment Act have already been made so that SMEs do not have to pay quota fees.