Maldives Customs Service has stated the amendments brought to the Import-Export Act will increase annual state revenue by USD 38.9 million.
Speaking to PSM News, Senior Superintendent of Maldives Customs Service Ahmed Niyaz said the import duty charged on 1,600 types of items have been altered, noting the duty rate on some items have been increased while the duty on some items have been either decreased or removed. Niyaz said the amendments are expected to add USD 38.9 million to state revenue on an annual basis, while the state revenue for the remainder of this year is expected to increase by USD 9 million. However, he noted the duty rate for common items sold by small and medium enterprises (SMEs) have mostly been reduced or removed completely.
President Ibrahim Mohamed Solih ratified the 17th Amendment to the Import Export Act of the Maldives on July 23 after it was passed by the Parliament of the Maldives on July 15. Following the ratification of the amendment, no export duty can be taken from any good which is not listed under the Section 3 of the act. Moreover, a 50% of export duty from the FOB price will be charged from ambergris and a 5% royalty will be charged from the FOB price of goods re-exported for business.
The changes also include a 50% waiver on import duties on all goods, excluding those listed in the Section 7 of the act, imported to any formal seaport or airport apart from ports in the Greater Male' Region. Also, a revenue fee of USD 0.065 from every USD 6.5 will be charged by the government from the price Customs allocates for all the goods imported, exported, or re-exported from the Maldives.
The act also mandates that 3% of the proceeds from the import-duty imposed on tobacco and cigarettes, go to the public health fund to carry out anti-tobacco public awareness campaigns under the Public Health Protection Act. Also starting from January 1, 2021, import of any goods declared by the president to be classified as single-use plastic, will be prohibited under Section 7 of the act.