President Dr. Mohamed Muizzu has declared Addu City as a tax-free zone for a period of three years, effective from January next year. This strategic decision aims to transform Addu City into a thriving hub for small and medium-sized enterprises (SMEs). During this period, investors in Addu will benefit from significant concessions, including exemptions or reductions in land rent, income tax, and various other business-related fees. The President specifically encouraged businesses in the Information Technology (IT) and service industries to capitalize on these opportunities.
Furthermore, the government has implemented several measures to address the challenges faced by entrepreneurs. These initiatives include ensuring timely payments from state-owned enterprises to small businesses, and facilitating the payment of port demurrage fees and freight charges in Maldivian Rufiyaa. Additionally, the government has decided to provide relief on cafe license fees and expatriate quota fees, while also working to integrate digital financial systems like PayPal to broaden market access for local businesses.
