President Muizzu announces tax offset for SMEs, duty waiver on raw materials

President Dr. Mohamed Muizzu has announced a series of measures to ease tax burdens on small and medium enterprises (SMEs), including allowing them to offset taxes against government payments owed to them and waiving import duties on raw materials. The decisions were revealed at the awards ceremony of the Maldives' Creativity Exhibition 2026 on Thursday night. Speaking at the event, President Muizzu said that delayed payments from the government had created difficulties for SMEs in paying taxes. To address this, the government will allow businesses to offset the amount the government owes them against their tax liabilities. If the government's payable amount exceeds the tax due, the business will not need to pay tax and the balance will be paid by the government. If the tax is higher, only the difference will be payable. President Muizzu noted that this would significantly reduce the tax burden on SMEs. Additionally, he announced that the annual GST registration threshold would be raised from MVR 1 million to MVR 1.5 million, effective from January 2027. Furthermore, the President announced a five-year waiver of import duties on a specified list of raw materials imported by SMEs starting January 2027. He also acknowledged ongoing government efforts to address challenges faced by small businesses in receiving foreign currency.