Economic Minister Mohamed Saeed stated on Saturday that there is no connection between the Free Trade Agreement (FTA) with China and the sharp decline in government revenue from import duties.
The Finance Ministry’s latest weekly fiscal report revealed that the state had earned MVR 138 million in import duties as of 6 February, a significant 64 percent drop compared to MVR 385 million recorded in the same period last year. The decline has raised questions about whether the FTA with China, which came into effect at the beginning of the year, contributed to the shortfall.
Speaking at the ‘Ahaa’ forum on Saturday night, Minister Saeed dismissed these concerns, asserting that some were attempting to link the reduction in import duty earnings to the trade agreement. He pointed out that since the FTA took effect, goods worth over MVR 1 billion have been imported from China.
“There’s therefore no link between this and the FTA. There is no link between that and this drop, this decline,” said Minister Saeed.
Minister Saeed also highlighted the benefits of lowering trade barriers, arguing that facilitating imports benefits businesses and consumers by keeping costs down. He stressed that President Dr Mohamed Muizzu’s administration is prioritising trade facilitation to ensure Maldivians have access to essential goods at affordable prices.
