Ministry of Economic Development on Wednesday night clarified that home-based workers or self-employed individuals are exempt from the Health Protection Agency (HPA)'s recent announcement regarding all food vendors.
In a controversial move, HPA declared last Monday that measures will be taken against all food vendors and micro-operations preparing and delivering food and beverages, unless they immediately registered their services with relevant authorities.
According to HPA, the implementation was intended to address health and safety concerns, after receiving multiple complaints of unregistered food and beverage services conducting deliveries and advertising through online platforms.
However, HPA's announcement, which came at a time when home-based micro-businesses are thriving in the community, was met with heavy criticism from the public.
Several raised concerns that the decision disproportionately affected women and single mothers who are selling home-made food and beverages in order to stay afloat amidst the financial recession, after suffering job loss, unpaid leave or pay cuts due to the ongoing pandemic.
Amidst the uproar, Ministry of Economic Development's Registrar of Companies Mariyam Visam pronounced on Wednesday night that HPA's announcement is not applicable to home-based vendors who are not operating as businesses.
Speaking at the Health Emergency Operation Centre (HEOC)'s press conference, Visam highlighted that as per Section 9 (a) and (b) of the Business Registration Act, selling products or providing services at home to sustain one's own livelihood without employing any additional individuals is exempt from registration.
Referring to a statement released by the economic ministry earlier the same night regarding the matter, Visam noted that only operations and services that are carried out as business for profit or financial gain are mandated to register.
According to Visam, these businesses include cafe's, tea shops, restaurants, canteens, and bakeries among others, again emphasising that individuals producing food in their home kitchens are not counted as such.
Touching upon the public outrage incited by HPA's announcement, Visam asserted that the agency's notice had been misinterpreted.
However, HPA's announcement in local Dhivehi language reads that it had received complaints of "food and tobacco products being prepared and delivered from unregistered kitchens, shops and homes...". HPA also noted that the complaints concerned the promotion of such products on online platforms and subsequent deliveries being made.
In addition, some citizens affected by the announcement have claimed on social media that upon reaching out to HPA, the agency confirmed that the regulation would be implemented against home-based individuals as well.
Just spoke with HPA and they have confirmed that they make zero distinction between home bakers and food establishments (restaurants/cafes)
— Shareehan ❓🎈 (@bulhaa) September 2, 2020
Things we need to submit include building permits, oil trap installments and certifications. https://t.co/UfXMJPRavT
Speaking at HEOC's press briefing, HPA's Director Ahmed Nasir admitted that the agency doesn't have particular guidelines on inspecting home-based food vendors to ensure they are adhering to HPA's guidelines on food safety and cleanliness.
Acknowledging that the home-based micro food operations is a field dominated by women, Nasir assured that HPA is working with relevant authorities to establish policy and inspection guidelines appropriate for such businesses.
However, he noted that promotion and sale of tobacco products from home without registration is illegal and that the authority will take the necessary action against violators.
Nonetheless, regarding food safety, Nasir stressed that in the meantime, it is vital for home-based workers to adhere to HPA's safety and cleanliness guidelines, which was echoed in the economic ministry's statement as well.
The economic ministry welcomed the works of home-based individuals who began to sell their own creations to make ends meet amid the ongoing economic recession as a result of the COVID-19 pandemic.
Furthermore, the ministry noted that it was working with Business Centre Corporation to help such individuals in the event they wished to expand and register their work as private businesses, companies, partnerships or cooperative societies.
Any individuals that wish to inquire further on business-related matters are urged to contact the ministry's call centre via 1691.
As a country heavily reliant on the hospitality field for income, the restrictions on local and global travel and tourism as a result of the COVID-19 pandemic have severe repercussions on the Maldivian economy, with many losing their jobs and local companies struggling to stay afloat.
In mid-April, the World Bank estimated that Maldives will be the worst-hit country in the South Asian region, in the ensuing economic regression caused by the pandemic.
Ministry of Finance projected earlier that the state deficit would reach MVR 13 billion this year compared to the MVR 5.9 billion originally stated in the 2020 State Budget, as a result of economic repercussions caused by the COVID-19 pandemic. The ministry also projected that the total state debt sans guarantee would increase to MVR 70 billion, which accounts for 86.6 percent of Gross Domestic Product (GDP). An overall 115 percent drop is projected in the GDP, along with 81.3 percent for nominal GDP.
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