Customs Owed MVR 461 Million in Unpaid Dues by End of 2023, Audit Reveals

Outstanding revenue receivables owed to the Maldives Customs Service reached MVR 461 million by the end of 2023, with more than MVR 160.5 million tied up in court judgment enforcement proceedings, according to the Auditor General’s Office.

The figures, detailed in the audit report on Customs’ 2023 financial statements, highlight persistent difficulties in recovering aged arrears despite existing debt-recovery protocols.

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According to the report, the vast majority of the outstanding amount, 94.55 per cent, consists of unpaid import duties. 

Penalties and fines represent 4.59 per cent of the total, while revenue fees and royalties each account for 0.42 per cent. 

Unpaid bond fees, processing charges, and other miscellaneous dues constitute the remaining 0.02 per cent.

Under current procedures, Customs issues formal written reminders five days before the expiration of a 30-day payment notice. 

If debtors fail to remit payment within the 30-day window, the authority initiates service suspensions and forwards cases for judicial recovery.

Despite these measures, MVR 461 million remained outstanding on the books as of 31 December 2023. Auditors noted, however, that MVR 10.16 million of the arrears was successfully recovered following the conclusion of the 2023 financial year.

The audit also confirmed that the Maldives Customs Service collected MVR 2.55 billion in state revenue during 2023, representing 11 per cent of the total tax revenue collected across the state that year.