Government announces tax and import duty relief for SMEs

Government announces import duty and tax relief measures for SMEs

The Government will raise the GST registration threshold to MVR 1.5 million and zero-rate import duties on SME production inputs from January 2027.

Mohamed Hilmy

25 October 2026, 06:39

The Government has announced a series of tax and import duty relief measures for small and medium-sized enterprises (SMEs), including a higher GST registration threshold and zero-rated import duties on raw materials used for production.

President Dr Mohamed Muizzu announced the measures at the Maldives Expo 2026 Awards Ceremony on Saturday evening.

From 1 January 2027, the mandatory GST registration threshold will increase from MVR 1 million to MVR 1.5 million. The current GST Act requires businesses whose taxable sales exceed MVR 1 million over a 12-month period to register for GST.

The Government will also zero-rate import duties on raw materials imported by SMEs for production purposes from 1 January 2027. The President’s Office said the legislative amendments required to implement the changes are currently underway.

A new tax-offset mechanism will also allow SMEs that are owed money by the Government to offset those outstanding amounts against taxes payable to the state.

The President also outlined plans for an SME tax-free zone in Addu City from 1 January 2027. The three-year pilot will provide concessions including first-year rent exemptions on government-leased land and income tax waivers. The Addu SME zone was first announced in the Presidential Address earlier this year.

Government announces import duty and tax relief measures for SMEs

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