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Major achievements since the last TPR include the establishment of a metrology laboratory and the introduction of a halal certification scheme. Furthermore, Maldives received capacity building and technical assistance from UNIDO under the project entitled "Market Access and Trade Facilitation Support for South Asian LDCs through Strengthening of Institutional and National Capacities related to Standards, Metrology, Testing and Quality (SMTQ)". Phase 2 of the project was implemented between November 2007 and December 2011 and has contributed to, inter alia, strengthening the MSMU; developing a plan for the control of sub-standard and hazardous imported products; and the strengthening and accreditation of the National Food Testing Laboratory. (...)

Although Maldives has no restrictions on the importation or production of GMO food, labelling requirements apply.

Table 3.4 Structure of tax revenue, 2009-14
(Rf million and %)
2009 2010 2011 2012 2013 2014
Tourism (bed/green) tax 19.5 20.4 15.3 11.7 9.7 7.8
(...)

The tourism bed tax expired in January 2014, in accordance with provisions of the GST (Goods and services tax) Act. It was reinstated briefly between April and November 2014 at the rate of US$8 per night bed (section 4.5.2). As of November 2015, it was replaced with a green tax levied at the rate of US$6 per bed night, payable in US dollars. The green tax applies to tourist resorts, tourist hotels and tourist vessels (including foreign vessels) registered with the Ministry of Tourism. Foreign tourist vessels are liable for the duration of stay of the vessel. Maldivians and resident permit holders staying at these establishments are not required to pay the tax. The intended purpose of the green tax is for the management of waste from local resorts and other islands. With its specific rate, the tax is likely to have a disproportionate effect on small and medium businesses compared to larger facilities. The authorities indicated that the tax does not apply to guest houses.

Domestic support is provided mainly through tax incentives and direct payments. In the agricultural sector, Rf 49.5 million was provided to farmers in 2013 through direct payments (section 4.2.2). Support to the fisheries sector continues to be provided mainly through fuel subsidies (section 4.2.1). Consumer subsidies and cross-subsidization in the form of price controls/fixing below production cost are in place in the energy sector (section 4.4).

(...) During the review period, tariff protection for the activity was reduced significantly, although most tariff lines relating to fish and fish products remain unbound. Fisheries subsidies are in the form of direct payments to support fuel costs (2009-14), a minimum income level during the low season (2014 onwards), and the installation of equipment for on board ice making facilities and for conversion of bigger fishing vessels to engage in longline fishing. The longline fishing policy and regime were changed to reflect illegal fishing and overfishing developments as well as domestic fishermen's interests/concerns; foreign participation in this type of fishery was ceased in 2010 and a catch allocation-based individual transferable quota (ITQ) scheme was established in 2014. (...)

Notwithstanding its land limitations and climatic risks, agriculture remains a crucial sector in terms of employment and therefore poverty reduction. Domestic producers receive support in the form of direct payments mainly distributed to compensate for loss of income due to natural disasters; as from 2014 direct payments were replaced with insurance schemes for farmers as well as concessional loans to support agricultural development. (...)

(...) Action is being taken both at the border and investment level to promote renewable energy and address several constraints. (...)

Maldives continues to lack a comprehensive fisheries management policy. Under the assistance of the Japanese International Cooperation Agency (JICA), at end-October 2015, the Ministry of Fisheries and Agriculture (previously Ministry of Fisheries, Agriculture and Marine Resources) (MoFA), which remains responsible for regulating the sector and formulating policy, was in the process of preparing a fisheries master plan. Despite a fairly comprehensive draft Fisheries Bill circulated in 2004 and withdrawn from the Parliament due to some concerns, the sector's regulatory framework remains relatively unchanged. Fisheries are regulated under Law 5/87 and the Regulation for Issuing the Licence to Fish in the Exclusive Economic Zone of the Republic of Maldives, which differentiate between near-coast and high-seas fisheries and stipulate the permissible methods of fishing. The regulatory instruments are applied through licensing systems. Maldives became a member of the Indian Ocean Tuna Commission on 13 July 2011, and in November 2012 it also certified pole and line fishery as a sustainable fishery product under the Marine Stewardship Council; the Council provides for eco labelling of fish and other marine products and a fishery certification programme to contribute to the health of the world's oceans.

During the review period, the longline fishing policy and regime were changed to reflect illegal fishing and overfishing developments as well as domestic fishermen's interests/concerns. [6] In 2014, the Government changed the longline fishery regime into a catch allocation-based individual transferable quota (ITQ) scheme based on its fleet development plan. The longline regulation provisions set buying/selling catch quotas, exchanges of quotas and auctioning of quotas. Annual quotas for longline are sold from 1 June to 31 May of the following year. In 2014, 11,800 MT of quotas was announced of which 96.3% was used. The authorities consider that the ITQ increased the licensing revenue generated from fisheries, raised the amount contributed by longline vessels and provided a competitive platform for the companies. During the first year of its operation, it raised revenue of Rf 6.8 million in quota fees; however, in 2015, this revenue was expected to decrease as a result of the decline in fish catch and the departure of some companies from fishery activities.

[6] The authorities indicated that local pole and line and handline vessels equipped with better engines started operating further into the sea, and there were many reports of illegal fishing and transhipment at sea by licensed foreign fishing vessels. Resolution 14/06 on establishing a programme for transhipment by large scale fishing vessels banned sea transhipments for such vessels, which have to report to a port for transhipment activities. Indian Ocean Tuna Commission (2015).