Minister of Economic Development and Trade, Mohamed Saeed has denied links between the decrease in import duty revenue to the Free Trade Agreement (FTA) with China.
The China-Maldives FTA came into effect on 1 January where it was expected to provide significant relief to various sectors by facilitating access to materials and tools, easing the burdens faced by local businesses.
Just a little over a month after the FTA came into effect, the latest revenue figures have shown a considerable drop in import duty revenue which has been linked to the FTA.
However, Minister Saeed during the fourth forum of the 'Ahaa' series, through which the government provides direct answers to citizens' questions held Saturday evening, explained that the revenue decline has no connection to the FTA.
“We have imported goods worth MVR1 billion [USD64.9 million] since January this year. Its CIF value is worth MVR34 million [USD2.2 million]. Out of this, FTA relief amounted to MVR2.3 million [USD149, 157]. That's just 1 percent of total imports. So [the decline in import duty revenue] has nothing to do with the FTA,” he explained.
Speaking about the benefits of the FTA, Minister Saeed said that Maldives and other larger countries will have contrasting views on the formulation and implementation of such agreements. As Maldives is heavily dependent on imports, the people will benefit the most from such agreements, he added.
"Maldives is an import dependent country. Maldives businessmen will benefit from importing goods to Maldives in a cheaper manner. The common people or consumers will benefit. We don't want to levy high tariff rates and bands,” the Minister said.
According to Minister Saeed, easing businesses and maintaining commodity prices is the primary objective of incumbent President Dr Mohamed Muizzu, adding that efforts towards that are ongoing through the Maldives Industrial Development Freezone (MIDFZ) company.