Maldives Inland Revenue Authority (MIRA) has commenced the recovery efforts of USD 1 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 USD 343 million in taxes and USD 686 million in non-tax dues. MIRA 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.
