President Pledges Policy to Ease Taxes for Businesses Owed Government Funds

President Dr Mohamed Muizzu has pledged to implement a policy to reduce taxes payable by businesses, even when the government owes them money.

The announcement came during a meeting with small and medium business owners at the Maldives Centre for Social Education, where participants raised concerns that they were required to pay taxes to the Maldives Inland Revenue Authority (MIRA) despite outstanding payments for state projects. Some business owners suggested that, in such cases, taxes should be offset against the funds owed by the government.

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The President said the policy is already in place to a limited extent, but will be expanded to apply more broadly. He noted that the government will coordinate with MIRA and the Ministry of Finance to ensure the process is legally compliant and provides an effective solution for affected businesses. While the exact amounts to be adjusted under the policy have not been specified, he assured that it would serve as a resolution.

President Muizzu also addressed delays in government payments to companies, saying efforts are underway to release funds to more businesses by the end of the month, with the possibility of clearing the remaining amounts by the end of Ramadan.

During the meeting, business owners also highlighted issues related to delays in air and sea cargo transport, high demurrage fees, and the rising number of businesses operated by expatriates in the Maldives.