MVR 9 billion in waived payments impact state revenue
The Auditor General’s Office also pointed to difficulties faced by the MIRA in recovering these funds, attributing them to enforcement challenges.
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The state has waived MVR 9 billion owed to it over recent years, according to a report presented by the Auditor General’s Office on Thursday.
Officials from the Auditor General’s Office addressed the parliamentary budget review committee, providing an assessment of the state’s revenue collection challenges. Director Shan, representing the office, reported that the Maldives Inland Revenue Authority (MIRA) has been unable to collect substantial sums owed to the state. According to MIRA data:
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MVR 5.9 billion was outstanding in 2022
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From 2022 to June 2023, this amount rose to MVR 7.7 billion
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By June 2023, the total outstanding amount reached MVR 10 billion
Shan noted that a significant portion of this uncollected revenue has been waived through legal relief mechanisms, including payment forgiveness and restructuring programs.
“For instance, legal provisions have enabled the forgiveness, restructuring, or delay of payments under certain circumstances,” Shan explained. “From 2020 to August 2024, these measures have led to a revenue loss of around MVR 9 billion, as outlined in the Budget Book, impacting the state’s overall revenue.”
The Auditor General’s Office also pointed to difficulties faced by the MIRA in recovering these funds, attributing them to enforcement challenges.
“These challenges largely stem from limitations within the enforcement sector,” Shan stated, adding that the IRA lacks adequate legal authority to pursue collections effectively. “Enhanced enforcement powers or regulatory amendments are necessary for the IRA to carry out revenue recovery,” he suggested.
