- President Muizzu announced raising the GST registration threshold from MVR 1 million to MVR 1.5 million from January 2027, plus tax relief allowing SMEs to offset state debts against tax liabilities.
- Addu City will host the first three-year SME concession zone pilot from January 2027, featuring income tax waivers and first-year rent exemptions, alongside zero import duties on raw materials.
- SMEs can receive US dollar payments via the Bank of Maldives Gateway from November, and the second phase of the youth loan scheme will launch the same month.
President Dr Mohamed Muizzu has announced plans to raise the mandatory GST registration threshold from MVR 1 million to MVR 1.5 million from 1 January 2027, alongside tax concessions and payment measures for small and medium-sized enterprises (SMEs).
Speaking at the Maldives Expo 2026 Awards Ceremony at Barceló Nasandhura on Saturday evening, President Muizzu outlined initiatives covering taxation, international payments, import duties and financing, scheduled for introduction between November and January.
The proposed GST threshold increase would raise the level of taxable sales at which turnover-based registration becomes compulsory. President Muizzu said the necessary legislative and regulatory changes would be introduced.
The government has also decided to allow SMEs to offset outstanding payments owed to them by the state against their tax liabilities. The measure is intended to address difficulties faced by businesses that must meet tax obligations while awaiting payment for goods and services supplied to the government.
Addu City will host the first three-year pilot under the government’s SME concession zone policy, beginning on 1 January 2027. The announced incentives include income tax waivers and rent exemptions during the first year for businesses operating on government-leased land.
The Addu initiative was first outlined in this year’s Presidential Address. President Muizzu said the Economic Ministry would announce further details of the concessions.
For international transactions, the President said local SMEs would be able to receive US dollar payments through the Bank of Maldives Gateway from 1 November. Arrangements would also enable businesses to use those funds to pay for goods and services purchased abroad.
The government also plans to introduce zero import duties on raw materials imported by SMEs for production from 1 January 2027. According to the President’s Office, the legislative amendments required to implement the changes are underway.
President Muizzu said the second phase of the youth loan scheme would launch in November. He also reaffirmed the government’s commitment to ensuring that persons with disabilities have equal opportunities to participate in the economy.
