The Maldives Association of Construction Industry (MACI) and the Minister of Construction and Infrastructure have welcomed and expressed appreciation for the government’s legislative proposal to increase the withholding tax on foreign contractors from 5% back to 10%. This adjustment is viewed as a crucial step toward rectifying the competitive imbalance between local and foreign contractors that emerged following the 2021 tax reduction, thereby ensuring a level playing field for Maldivian companies. According to projections by the Maldives Inland Revenue Authority (MIRA), this amendment is expected to generate an additional annual revenue of approximately MVR 251 million for the state.
