The Maldivian government has announced a five-year exemption from import duties on selected raw materials used by small and medium-sized enterprises (SMEs), effective January 1, 2027.

President Dr Mohamed Muizzu announced the measure while speaking at the awards ceremony of the Dhivehi Product Expo, highlighting the government’s commitment to supporting local businesses and creating a more business-friendly environment.

Under the initiative, a comprehensive list of eligible raw materials will be compiled, with import duties reduced to zero per cent for the listed items for five years.

The President also announced two additional measures aimed at easing financial pressures on businesses.

Tax Relief for Businesses Awaiting Government Payments

SMEs that have provided goods or services to the government but are still awaiting payment will be allowed to offset their outstanding tax liabilities against payments due to them from the government. An arrangement will be established to facilitate the process.

Higher Tax Registration Threshold

The government also plans to raise the tax registration threshold to MVR 1.5 million. The necessary amendments to existing laws and regulations will be introduced to implement the change.

Congratulating participants who received awards at the Dhivehi Product Expo, President Muizzu praised the creativity and craftsmanship demonstrated by Maldivian producers.

He reaffirmed the government’s commitment to expanding the role of SMEs in local production and supporting the continued development of the sector.