Maldives Inland Revenue Authority (MIRA) has disclosed its guidelines requiring every business registered to collect Goods and Services Tax (GST) to levy USD0.13 per plastic bag from April 18.
President Ibrahim Mohamed Solih approved an amendment to the Waste Management Bill on December 18 to levy every plastic bag sold or supplied to customers by businesses. The law provides that businesses in the Maldives will be required to start collecting levies on plastic bags sold or supplied to the customer at the point of sale within four months from the date of commencement of this law. Therefore, a levy of USD0.13 will be charged on plastic bags after April 18. The law also requires MIRA to disclose its guidelines on levying the tax.
MIRA laid down the guidelines for the levy on plastic bags and as per the Rules on Charging Fee from Plastic Bags, every business that is required to register for Goods and Services Tax (GST) has to levy USD0.13 per plastic bag. If a GST-exempt good is given to a customer in a bag, USD0.13 will be charged from the bag. The guidelines also stipulate that the fee charged as a levy on plastic bags is payable to MIRA. If the fee is not paid, a penalty of 0.05% of the outstanding amount will be imposed for each day of non-payment from the due date. In addition, businesses will be fined USD3.24 per day if they do not share the information on the levy on plastic bags.
The government is committed to phasing out single-use plastics in the Maldives by 2023, as per the Parliament Resolution of 2019. The amendment to the Environmental Protection and Conservation Act has prohibited the import, manufacture, and marketing of single-use plastics as determined by President Solih.