Adheeb: Duty from some items has been removed after thinking

Tourism Minister Ahmed Adheeb said the decision to remove customs duty from gold and luxury yachts was made after a lot of research and after thinking “long term.”

Speaking at the press conference of the Economic and Youth Council, Minister Adheeb said that a lot of research was conducted by the Economic Ministry regarding the customs duty. He said that the customs duty from gold was removed because the Maldives is close to India and it is the most important product from India.

“Dubai became Dubai with the trade of gold. It was a big research of the Economic Ministry. If yachts are paying duty; For example, tourists are visiting here, to Maldives, in the first class. And for example, we had to take them to Shangri-La in a small Gulf craft boat. So it’s not first class service being given. To attract these yachts and since there’s a marina in the second phase of the Hulhumale’ project, to make the Maldives attract luxury vessels and to expand the gold business to locals, foreigners and foreign investors to expand the gold business, that decision was made.” The Minister Said.

Minister Adheeb said that it would be profitable in the future.

While the new Import/Export law removes all customs duty from gold and luxury yachts, duty from 11 types of products have been raised with the law effective from midnight last night.

Starting last night, the duty on cigarettes would go up from MVR 0.90 to 1.25 and the previous zero percent duty from oil would go up to ten percent. And 20 percent duty would be taken from perfumes and luxury cosmetics which did not had any duty before.

Other cosmetics are to be charged five percent as duty. Effective tonight, the previous 35 percent duty from heavy machinery has been raised to 50 percent and the duty on passenger vehicles has been raised to 200 percent. The customs duty for land vehicle spare parts has gone up from 35 to 50 percent. And the 150 percent duty from tools related to smoke has gone up to 200 percent.