Commissioner General of Taxation of the Maldives Inland Revenue Authority (MIRA) Hassan Zareer has revealed that discussions with relevant authorities are underway to take further steps during the enforcement phase to recover the money owed to the state in various ways.
Speaking to PSM News, Zareer provided details about the taxes and non-taxes due to MIRA that have yet to be collected and the ongoing efforts to recover these funds. He revealed the government is owed USD 500 million in taxes alone, including fines, and USD 506 million in non-tax revenue from building and land rent. He also highlighted that the largest sums have accumulated during the COVID-19 pandemic.
Additionally, Zareer said that some state-owned enterprises (SOEs) and relevant agencies are among those with outstanding amounts. He said that MIRA is collaborating with the Ministry of Finance to establish a uniform procedure for individuals that have not paid. He said that the government is now meeting individually with large debtors to recover these amounts. He also noted an increase in tax revenue received by MIRA last month and emphasised that meetings with taxpayers are resulting in more entering the system, agreeing to tax payment plans, and securing commitments from top officials to pay taxes regularly.
Furthermore, Zareer attributed the substantial unpaid amounts to the financial challenges businesses faced during the pandemic, which led to the suspension of some enforcement measures. He noted that the Action Policy in place before 2019, which allowed agencies to check and temporarily withhold services if taxes were due, was discontinued. As such, he said that discussions are being held with the finance ministry for the possibility of re-implementing this policy.
Moreover, Zareer said that the focus is on recovering money from defaulters by providing necessary concessions within prescribed regulations, rather than imposing harsh measures. He also highlighted that the efforts made so far are showing positive results, with USD 973 million still owed to the state. President Dr. Mohamed Muizzu has assured that he will take all necessary actions to recover this money.