Projects undertaken under India's EXIM Bank's financing have been exempted from income tax.
The exemption was facilitated under regulations on Special Exemption from Tax on Income from Business Projects and Sectors which have already been gazetted. The exemption was made under the power held by the President to determine those exempt from payment of income tax.
The Finance Ministry holds the power to maintain and make public the register of persons exempt from income tax as decided by the President.
Some projects that were granted tax exemption:
Addu City Road Construction Project
Addu City Road Construction Project's consultancy work
Hanimaadhoo International Airport Development Project
Thilamale Bridge Project
The company implementing the projects and the price of the projects have been announced on the Finance Ministry's website. Most of the exempted projects have been awarded to India's AFCONS Infrastructure under an $800 million line of credit from India's EXIM Bank.
AFCONS Infrastructure is carrying out several major development projects in the Maldives. The media has been reporting several internal issues within the company, including complaints from employees that the company has been neglecting their basic rights to food and wages. AFCONS was also recently fined a large amount for the damage caused when a platform used for Thilamale' Bridge construction ran aground Villimale' reef.
