A new policy setting out how exemptions on import duties, royalties and revenue fees will be granted has been gazetted, establishing a structured framework for supporting activities considered economically significant to the Maldives.
The policy outlines how discretionary authority can be applied to grant full or partial exemptions for goods imported to initiate, implement or operate activities deemed beneficial to the national economy. It also provides for exemptions tied to public benefit during special circumstances, as well as for goods linked to strategic economic projects involving imports, exports or re exports.
Eligible exemptions extend to capital equipment, spare parts, raw materials and operational supplies connected to qualifying activities. The policy identifies sectors such as boat building and vessel repair, fisheries development, and agricultural inputs imported by small and medium enterprises as areas that may receive relief. Activities expected to reduce import dependency, expand exports, increase trade or employment, and generate foreign currency inflows are also included.
The framework further accommodates emerging sectors not yet established domestically, diversification initiatives and projects supporting SME growth, including those financed through government backed loans or grants. Tourism related provisions allow exemptions for new investments and for capital expenditure or renovation work on existing projects where spending exceeds 25 per cent of the original investment value.
Geographic targeting is also incorporated. Materials imported for resort development in atolls with comparatively lower tourism activity including Haa Alifu, Haa Dhaalu, Shaviyani, Thaa, Laamu and Addu are eligible, alongside imports tied to halal tourism resort development. Marine fuel imported and re exported by licensed Maldivian businesses for bunkering foreign vessels is also covered.
The policy sets parameters on the scope and duration of exemptions and requires that any agreement by a state institution containing such provisions receive approval from the President’s Office. Regulations issued by the Ministry of Economic Development and Trade specify that applications may be submitted by entities registered under the Business Registration Act, as well as by local councils and state institutions.
The framework formalises how fiscal incentives can be applied across sectors while introducing clearer administrative procedures for approvals and oversight.
