MIRA Intensifies Push to Recover State’s Due Revenue

Ahmed Saaid Mustafa, Chairman of the Maldives Inland Revenue Authority (MIRA) and State Minister at the Ministry of Finance, has stated that efforts to recover the state’s due revenue are at an unprecedented level. 

Speaking in the Budget Review Committee of the parliament, Saaid noted that problems with tax payments, which have persisted over the past two years, have become increasingly serious this year.

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Saaid explained that despite the economic recovery in 2023, several tax relief measures introduced in 2020 during the COVID-19 pandemic remain in place. He cautioned that the continued failure of some taxpayers to fulfil their obligations poses a significant risk to the government’s revenue stream. “If the state does not generate enough revenue, it will not function properly,” he warned.

The Chairman emphasised the importance of revising existing tax laws to strengthen compliance and ensure fiscal sustainability. He said that amendments to the Tax Administration Bill are being proposed to address the ongoing challenges in tax collection.

Discussing the upcoming national budget, Saaid stressed that any tax exemptions must be clearly defined within the relevant legislation. “In the opinion of the Finance Ministry, any tax exemption should be clearly defined in the tax laws. It is very important that this is done through the Income Tax Act,” he said. He also urged members of parliament to support the Finance Minister in shaping the country’s revenue policy to ensure the effective management of public finances.