Gov’t to Allow Vendors to Convert Unpaid Dues into Treasury Bonds
The government plans to let vendors convert unpaid dues into treasury bonds and use land leases to offset payments owed to the state, creating an additional revenue opportunity.
Recent data from the Ministry of Finance reveals that the state currently owes over MVR 3 billion in unpaid bills to various parties, including payments that have been outstanding for more than six months. In response, the President’s Office has outlined a plan to begin settling these dues in a transparent manner, starting with the oldest invoices and depending on the funds available each month.
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The government intends to pay off a certain number of bills that fall below a specified threshold monthly and will maintain separate records for these transactions. Additionally, a task force is to be established to address money owed by businesses to the state, particularly focusing on taxes owed to the Maldives Inland Revenue Authority (MIRA).
Following discussions with the Cabinet, the President will review loan options presented by the Ministry of Finance and consider further loan opportunities, including short-term loans. Measures to strengthen the foreign exchange market and boost demand for the local currency, the Maldivian Rufiyaa, were also key topics at the Cabinet session held yesterday.
Attorney General Ahmed Usham, speaking at a press conference following the Cabinet meeting, revealed that amendments to the Income Tax, Pension, MIRA, and GST Acts would be introduced shortly. These amendments will require businesses earning in foreign currency to pay customs duties, income tax, and pensions in US dollars, aiming to bolster the nation’s foreign currency reserves.
The government’s comprehensive approach reflects its commitment to addressing financial challenges while ensuring that the state’s obligations are met in a fair and efficient manner.
