Committee recommends offset system for companies dues
Shareef noted that some companies had faced bankruptcy because of prolonged delays in receiving payments.
The Finance Committee of the Parliament has recommended that private companies be allowed to settle their dues to the government after deducting amounts owed to them by the state.
The decision follows concerns raised by committee members over delays in payments from the government to private contractors and suppliers. During the meeting held on Wednesday, members noted that a significant number of companies had not fulfilled their tax obligations due to outstanding payments from the government.
Kelaa MP Ibrahim Shareef stated that many businesses were unable to meet their financial responsibilities, including tax payments to the Maldives Inland Revenue Authority (MIRA), as a result of the government's failure to settle debts for goods, services, and projects previously procured.
He also noted that some companies had faced bankruptcy because of prolonged delays in receiving payments for work undertaken during the term of the previous administration.
"Many of these companies were contracted by the former government. However, the payments were never made. This has affected their operations and ability to meet tax obligations," MP Shareef said.
Following the discussion, the committee resolved to advise the Ministry of Finance to explore mechanisms that would enable private companies to offset receivables from the government against their tax and other payment obligations.
Baarah MP Ibrahim Shujau supported the proposal.
According to President Mohamed Muizzu, the government currently owes between MVR 5 to 6 billion to various private entities. He has stated that these payments will be cleared within the year.
