The Maldives Inland Revenue Authority (MIRA) has published guidelines on the plastic bag fee to be introduced this month.
In late 2022, President Ibrahim Mohamed Solih ratified the Waste Management Act, which will require businesses to levy a USD0.13 fee on customers that buy plastic bags from April 18 this year. In order to increase awareness, MIRA is holding information sessions and has also published guidelines for businesses and the public.
MIRA stated that every business operating in the Maldives will be required to charge a fee of USD0.13 for each plastic bag on point of sale beginning from April 18. However, plastic bags will be exempt from the fee if they are sold or provided free of charge by duty-free shops or are used to carry any type of fresh unpackaged fish. In addition, bin liners sold or supplied free of charge specifically for the purpose of waste disposal, by either a person who provides waste management services or another relevant authority will also be exempt from the fee.
However, the fee will be levied on plastic bags used to carry frozen fish, chicken, or pet fish after their purchase. The fee will also be levied on plastic bags given out at promotional events or used to package food items such as rice and flour for customers.
Additionally, MIRA stated that businesses will be required to levy a fee of USD0.13 for each plastic bag whether they are sold individually or as a bundle. Businesses registered for goods and services tax (GST) will be required to levy GST on plastic bags sold in bundles. Businesses registered for GST are also required to disclose its guidelines and other information on plastic bag fees. Businesses that do not disclose the information will be penalised with a fine amounting to 5% of the fees levied during the period and an additional USD3 fine for every day the business operates without submitting the information. Businesses registered for GST that do not submit their payment related to the plastic bag fee will be issued a fine amounting to 5% of the pending payment for each day they do not make their payment.