Maldives to Boost Revenue by $40-80 Million with New Dollar Tax Legislation

Economic Minister Mohamed Saeed has projected a significant increase in government revenue, estimated between USD 40-80 million, following amendments to the tax law that will target businesses earning in dollars. The new legislation will introduce income tax, pension contributions, and customs duties payable in dollars for enterprises with dollar-based earnings.

Addressing the media at a press conference organized by the People’s National Congress (PNC), Minister Saeed emphasized the government's commitment to enacting these legal changes swiftly. He outlined the administration's strategic focus on bolstering foreign exchange reserves as a critical component of enhancing state revenue.

Minister Saeed highlighted that the government has engaged in discussions with international investors currently operating in the Maldives to ensure a smooth implementation of the new tax regulations. There are approximately 950 foreign investments in the country, with over 500 being related to the tourism sector, a cornerstone of the Maldivian economy. Saeed reassured that the government's approach will balance the interests of both the local public and the business community.

In his remarks, Minister Saeed underscored President Mohamed Muizzu’s primary objective of increasing state revenue, with a particular emphasis on raising and retaining foreign exchange within the Maldives. This strategic move aligns with the broader economic goals of the Muizzu administration, aiming to stabilize and strengthen the country's financial standing.

The introduction of this tax law amendment marks a pivotal step in the government's broader economic strategy, which seeks to secure long-term fiscal sustainability while fostering a favorable environment for both local and international businesses operating in the Maldives.