The Maldives Inland Revenue Authority (MIRA) has published a guideline on the implementation of the new plastic bag fee.
The plastic bag fee is levied on local business ventures, registered with MIRA and subject to pay GST. The fee is charged in accordance with the Maldives Waste Management Act (Act No: 24/2022).
Under the new guideline, plastic bags sold at the point of sale is subject to a fee of MVR2.00.
The new fee will become effective from 00:00hrs on 18th April 2023, said MIRA.
While the plastic bag fee is mainly collected from entities registered to pay GST to the authority, the fee is still subjected to, and will be collected from those who, by law are required to, but have not registered with MIRA to pay GST.
Additionally, MIRA reports that the existing GST taxpayers registered (or not registered) are not required to register specifically for the plastic bag fee; as it is automatically charged for the usage/sale of the item.
Exemptions
While MIRA is set to charge the new fee from the sale and usage of plastic bags, the authority has confirmed of notable exemptions which include;
- Plastic bags sold or given free-of-charge from Duty-Free Outlets/Shops
- Non-enclosed plastic bags used to store/pack fresh ocean or reef fish, bait fish, or other seafood products
- ‘Bin-liners’ sold or issued by registered waste management companies or any other relevant authorities
- Plastic bags required for the necessary packaging of items by goods manufacturers
The full guideline has been published, and is now available from MIRA’s website.