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Gov't to amend taxation act to give MIRA authority to recover state dues

The government plans to amend the Administrative Taxation Act to enhance the authority of the Maldives Inland Revenue Authority (MIRA). Attorney General Ahmed Usham announced that the amendment will be introduced later this year.

Currently, there is an estimated USD 1.04 million in tax and non-tax revenue owed to the state, including fines. MIRA reports that this comprises approximately USD 456 million in tax revenue and USD 456 million in non-tax revenue.

The the third amendment to the Administrative Taxation Act empowered the Attorney General to recover any state dues—excluding taxes—that remain unpaid after their due date, under Article 50 of the Act. The Attorney General's Office has identified delays and challenges in the current recovery process, prompting the need for legal reforms to streamline revenue collection.

Attorney General Usham indicated that he will present the amendment to Parliament this year. This revision will also authorize MIRA to accept non-tax revenue and pursue recovery actions in accordance with Sharia law, as previously practiced.

MIRA has already been granted certain powers to recover state dues beyond taxes, allowing them to initiate actions such as sending payment notices, publicizing the names of defaulters, and withholding services requested from government agencies. Commissioner General of Taxation Hassan Zareer emphasized that MIRA is actively working to recover outstanding funds owed to the state.