The Auditor General’s Office has called on the Maldives Inland Revenue Authority (MIRA) to amend tax laws and regulations to strengthen enforcement and recover outstanding dues to the state, which totalled MVR 13.2 billion in 2023. This includes MVR 6.55 billion in tax revenue and penalties, and MVR 6.67 billion in non-tax revenue and penalties, with resort rent arrears making up MVR 5.9 billion.

A bill to amend the Tax Act, aimed at increasing penalties for tax offences and expanding MIRA’s enforcement powers, was accepted by Parliament on Monday and sent to the Economic Committee.

The proposed changes would allow MIRA to seize land, freeze bank accounts, recover funds through third parties or foreign jurisdictions, and suspend services from state agencies for defaulters. New offences, tougher punishments, including up to two years’ imprisonment for tax evasion, and stricter confidentiality rules for MIRA staff are also included.

The Audit Office has also urged consultation with relevant authorities to address obstacles in recovering non-tax revenues, particularly resort rents, and to develop a coordinated roadmap led by the Finance Ministry.