Maldives (Commonwealth Union)_ As a major initiative of the Waste Management Act, Maldivian businesses have begun charging MVR 2 per plastic bag sold or distributed to a consumer at the point of sale. This measure is a result of the Waste Management Act, which President Ibrahim Mohamed Solih ratified on 18 December 2022. The move took effect on 18 April 2023, and the act mandates businesses to charge MVR two per plastic bag sold or distributed to a consumer during sales. The Act also mandates GST-registered individuals to pay the plastic bag tax to MIRA.
Further, the Act demands that MIRA prepare the rules for the collection of fees under the Act by GST-registered individuals, within three months of the Act’s promulgation. MIRA specifies that the guidelines will provide details on how to calculate the plastic bag fee, report the fee information on the tax return, and pay the fee. Accordingly, the regulations stipulate that beginning 18 April 2023, businesses will be required to charge MVR 2 per plastic bag sold or supplied at the point of sale.
In addition, the rules stipulate that the plastic bag fee must be remitted to MIRA before the GST payment deadline. Additionally, this should include information regarding the plastic bag fee. According to MIRA, the charge for plastic bags must be paid in Maldivian Rufiyaa. It also states that certain categories of plastic bags are exempt from the plastic bag levy. Accordingly, plastic bags sold or provided by duty-free retailers, plastic bags for all sorts of unsealed fresh meat, and binliners sold or issued mainly for refuse by waste management service providers or other competent authorities are exempt from this charge.
Moreover, MIRA stated that GST-registered entities must keep documentation to ensure that the amount of the plastic bag fee levied to the consumer for plastic bags sold or distributed is calculated based on the applicable laws and regulations. The authority emphasizes that the guideline includes information about the documents that must be maintained. MIRA also stipulates that action will be taken against GST-registered individuals who fail to submit details on plastic bag fees or who fail to pay this fee. As a result, this information has been included in the “Rules for Charge of Plastic Bags by GST Registered Persons”
