Maldives to waive import duty on environment-friendly vehicles

The Cabinet has decided to waive import duties on electric and renewable energy powered vehicles to boost the government’s initiative to promote the import and use of environmentally friendly products.

Deliberating on a paper presented by the Ministry of Economic Development on waiving import duties on environmentally friendly products imported to the Maldives, the Cabinet also decided to waive import duties on solar panels and solar panel batteries used in marine vessels.

The Cabinet noted that most of the vehicles and marine vessels used in the Maldives rely on fossil fuel – petrol and diesel – and therefore, it was important to give a duty incentive to encourage the import of eco-friendly vehicles and renewable energy products used in vessels.

The Cabinet decided that import duties on these vehicles and products would be waived in accordance with on documentation issued by the Environmental Protection Agency (EPA) declaring their eco-friendliness.

In addition, the Cabinet deliberated on the matter of introducing a feed in tariff system to encourage adoption of renewable energy in order to attain carbon neutrality goal, secure energy security and reduce dependency on imported oil.

After discussing the matter, the Cabinet, to encourage private investments in renewable energy, decided that the regional utilities companies would purchase electricity produced by renewable energy companies to the grid at the rate Rf3.50 per unit of electricity.

The Cabinet decided to subsidize 50 laari from each unit of electricity, produced using renewable energy, purchased by utilities companies.

Further, the Cabinet decided to waive import duties on raw materials and equipment imported for agriculture, fishing and poultry industries to increase local productivity and develop industries with potential of import substitution.

Cabinet also recommended seeking a 15000 sq ft land in Hulhumale to establish a detoxification centre, a halfway house and other drug rehabilitation infrastructure to be built with international donor assistance.

Source :: Haveeru

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