President Dr. Mohamed Muizzu has determined the payment methods to the companies. The President announced to the decision to implement measures to address the country’s fiscal and monetary challenges, based on recommendations from his Cabinet. The President’s decision follows a comprehensive deliberation on a proposal presented by the Ministry of Finance during the most recent Cabinet meeting.
Deliberating on the details of dues owed by the government to companies and solutions that can be offered to such large vendors, the President decided that these dues should be repaid from its revenue. The decision stated that, depending on the amount of money to be paid to vendors each month, the payments would be conducted in a transparent manner, starting with the oldest bills.
The proposal also recommended determining the number of bills below a certain threshold that the government would repay monthly and maintaining records of both halves separately. A taskforce comprising stakeholders will be established to lead efforts in recovering funds owed to the state. Furthermore, the President will review loan options presented by the Ministry of Finance and seek additional loan options, including short-term loans.
Additionally, following consultations with his Cabinet, the President decided to explore avenues for vendors to transfer unpaid dues to treasury bonds (T-bonds), which would generate additional revenue for vendors. Measures will be provided for those interested in leasing lands, offsetting payments owed to the state, particularly taxes owed to the Maldives Inland Revenue Authority (MIRA).
The recent Cabinet session also concentrated on measures to fortify the foreign exchange market and boost the demand for the local currency. The decision to push legislative reforms allows the state to levy import duties in US dollars on businesses that generate revenue in foreign currencies. Further reforms will enable the state to collect employee pension contributions from such companies under the Pension Act of Maldives in US dollars, as well as mandate that corporate income tax be payable exclusively in US dollars.