Maldives Inland Revenue Authority (MIRA) has begun the recovery of USD1 billion owed to the state.
MIRA stated the amount was the accumulated dues owed to the state as of December 31, 2021. The accumulated dues consist of USD343 million in taxes and USD686 million in non-tax dues. The authority stated it has commenced enforcement actions to recover the amount, after two years of leniency due to the COVID-19 pandemic.
MIRA previously provided leeway for parties that were unable to pay taxes on time due to the pandemic, which included easing tax policies for businesses and allowing taxes to be settled in installments. Revenue collection had also dropped significantly during the pandemic, due to the high number of businesses that had been financially impacted and the decline in the collection of Income Tax.
However, MIRA published new policies for the non-payment of taxes following the lifting of the State of Public Health Emergency. It stated the new policies replace its enforcement policy, which had been put on hold for the past two years due to the pandemic.