President Muizzu unveils five concessions for SMEs, including tax-free zones

President Mohamed Muizzu has announced a series of tax incentives and support measures for small and medium enterprises (SMEs) in the Maldives. The announcement was made at the award ceremony of 'Maldives Expo 2026' held at Baselo Naasandhura. The President detailed five concessions. The most significant is the establishment of tax-free zones for SMEs, with the first zone set for Addu as a three-year pilot project starting 1 January. Businesses in the zone will be exempt from land rent, Business Profit Tax, and income tax, along with other benefits. Additionally, from 1 November, businesses will be able to receive dollar payments through the BML Gateway for remittances, allowing them to import goods and services. The government will also raise the GST registration threshold from one million rufiyaa to 1.5 million rufiyaa from 1 January. Import duties on raw materials for SMEs will be removed starting 1 January, with legal amendments underway. Furthermore, the second phase of the loan scheme for young entrepreneurs will commence in November. President Muizzu said the aim is to make ordinary citizens self-reliant and create income opportunities through productive work, building a sustainable economy.