Economic Minister Mohamed Saeed has said that it is not clear to what extent the Free Trade Agreement (FTA) with China will reduce the Maldives' revenue from import duties.
In a written response to a question by Galolhu North MP Mohamed Ibrahim, the minister said the duty on imports under the FTA would be based on the price of goods imported from China.
"The duty on Chinese imports will depend on the price of goods imported from that country. The Honorable MP has asked about future transactions so the exact figures will be clear only after the transactions are completed," Saeed wrote in his reply.
Meanwhile, the government's revenue from import duties this year has declined compared to the same period last year. But, Saeed said this was not caused by the FTA with China.
According to Saeed, relatively few goods were exempted from duty under the FTA and goods worth MVR 1 billion have been imported with a CIF value of MVR 34 million so far this year.
But only MVR 2.3 million was waived under the FTA, he said.
"It's one percent of total imports. So the revenue drop has nothing to do with the FTA. It's not related to the FTA," Saeed said.
Efforts are being made to explain the decline in import duty revenue to the public, he said.
The FTA with China is the Maldives' first such agreement with any country. Earlier, Saeed said 70 percent of Chinese imports will be exempted from duties, which is expected to rise to 90 percent in the future
