Addu will host the first tax-free zone. In addition, business will be able to receive dollar payments through the BML gateway, and the government will ease GST and import duty rules.
President Dr. Mohamed Muizzu has announced major tax relief for small and medium-sized enterprises (SMEs). As part of the plan, the government will set up tax-free zones for SMEs across the country.
The President spoke on Saturday evening at the awards ceremony of “Maldives Expo 2026” at Barceló Nasandhura. During his speech, he set out the concessions and opportunities that the government will introduce for SMEs over the next three months.
Five New Measures:
The President said the government has decided to give SMEs five concessions, which are:
- Dollar payments from November 1: Businesses trading anywhere in the world can receive payments in dollars through the BML gateway. They can then use these funds, through remittance, to buy goods and services from abroad.
- Tax-free zones from January 1, 2027: The government will create special tax-free zones from SMEs. Addu will host the first zone as a three-year pilot project. Inside the zone, the government will charge no rent on the land it allocates. It will also waive business profit tax (BPT) and income tax, and ease quota limits.
- Tax offsetting and a higher GST threshold: The government will deduct the tax that SMEs owe from the money it owes them. Furthermore, from January 1, it will raise the GST registration threshold from MVR 1 million to MVR 1.5 million.
- No import duty on raw materials from January 1: The government will remove import duty on raw materials that SMEs bring in. According to the President, the government is already working on the legal changes it needs to make this happen.
- Second phase of the youth loan scheme: The government will launch the second phase of its loan scheme for young entrepreneurs in November.
The aim behind the measures
Explaining the reasons for the package, the President said the government wants ordinary citizens to become self-reliant.
“The purpose is to help ordinary citizens stand on their own feet. We want to open the way for them to earn an income and do productive work. That way, they can build something constructive, strong and sustainable,” the President said.
He also stressed the wider benefits. “As a result, both these individuals and the nation will gain. This is how we achieve inclusive development,” he said.