The Commissioner General of Taxation, Hassan Zareer, has announced that the Maldives Inland Revenue Authority (MIRA) is in discussions to withhold services from individuals and businesses that fail to pay their taxes. This move comes as part of efforts to address significant delays in tax payments.
According to Commissioner Zareer, the suspension of MIRA’s Action Policy during the COVID-19 pandemic has resulted in approximately MVR 5.7 billion in direct taxes remaining unpaid. He highlighted that compliance with tax policies was robust prior to the pandemic when the action policy was actively enforced.
Discussions are currently underway with the Finance Ministry to reinstate the action policy. Commissioner Zareer confirmed that under this policy, MIRA will have the authority to instruct service providers to temporarily cease services to non-compliant taxpayers.
A circular from the Finance Ministry is expected to formally announce the reimplementation of the policy soon. Once the policy is back in effect, services will be temporarily suspended for individuals and businesses that do not meet their tax obligations.
Commissioner Zareer emphasised that these changes are not meant to enforce stricter regulations but to encourage timely payment of taxes to MIRA. The initiative aims to ensure that businesses fulfil their financial responsibilities, thereby contributing to the state’s revenue.
The reimplementation of the action policy signifies MIRA’s commitment to maintaining fiscal discipline and ensuring that tax compliance is upheld across the Maldives.
