In an effort to reduce the environmental impact of plastic waste, a fee of MVR 2 has been imposed on disposable plastic bags in the Maldives since April 2023.

One of the main objectives of this measure is to decrease the volume of plastic imported into the country, and early indications suggest the policy is beginning to yield positive results.

According to the Maldives Inland Revenue Authority (MIRA)’s Annual Report for 2024, there has been a noticeable reduction in the import of plastic bags, as reflected in the revenue generated through the fee.

MIRA collected MVR 9.19 million in plastic bag fees last year. Although this figure is just 0.3 per cent lower than the estimated revenue of MVR 9.22 million, it represents a significant decline when compared to the previous year. In 2023, plastic bag fees generated MVR 12.66 million, indicating a year-on-year decrease of 27.4 per cent.

Revenue from the plastic bag fee is calculated based on annual consumption levels. The lower revenue therefore points to a reduction in usage, which is consistent with the Government’s environmental aims.

The fee, introduced under the Waste Management Act and referred to as the Plastic Bag Charge, applies to plastic bags sold at the point of sale by GST-registered entities. The regulation came into force on 18 April as part of broader efforts to promote sustainable waste management practices.

The report also notes that plastic bag fee collections reported by GST-registered persons fell by 28.8 per cent compared to the previous year, further supporting the view that plastic bag usage is on the decline.