President Dr Mohamed Muizzu has announced a three year pilot programme to establish Addu City as a small and medium-sized enterprise (SME) zone, offering businesses tax and other concessions from 1 January next year.

Speaking at the Maldives Expo 2026 awards ceremony last night, President Muizzu said Addu would be the first of several designated zones where this initiative will be implemented, intended to support SMEs and stimulate economic activity.

Businesses operating physically from Addu will receive a range of concessions under the programme, including an exemption from rent on government-leased land during the first year and income tax waivers. The government also plans to increase quotas from 20 to 30.

President Muizzu said the initiative aimed to create jobs and strengthen Addu’s economy, adding that similar zones would be established elsewhere in the country in the future.

He said the programme is an opportunity for small businesses to expand and urged entrepreneurs to take advantage of the concessions.

The President also announced several other measures to support SMEs, including raising the mandatory Goods and Services Tax (GST) registration threshold from MVR 1 million to MVR 1.5 million, effective 1 January.

He said arrangements have been finalized to allow businesses to offset outstanding government dues against taxes owed to the state.

The government has also decided to offer zero-rate import duties on raw materials brought in by SMEs for production purposes from 1 January 2027. President Muizzu said legislative amendments required to implement the changes were being prepared.

In addition, the government plans to reduce import duties on certain goods for five years from 1 January next year.

President Muizzu said the measures were intended to remove barriers to income growth and create better opportunities for businesses across the country.