President Dr. Mohamed Muizzu announced last night that a mechanism would be established to allow companies to offset their tax liabilities against outstanding payments owed by the government, should such payments be delayed.

During a meeting held last night at the Social Center with small and medium-sized enterprise (SME) owners, some business owners expressed concerns that while payments for government projects are delayed, the Maldives Inland Revenue Authority (MIRA) actively pursues collection of taxes.

In response, the President acknowledged that the government currently allows tax deductions for some payments owed to companies, but this practice is not yet widely implemented.

"However, we will ensure that this is expanded into a more comprehensive approach, enabling a greater number of parties to apply this principle. We will establish a system where your outstanding payments to the government can be offset against payments due from the government. We will sit down with MIRA and the Ministry of Finance to review any legal considerations and provide the best solution," the President affirmed.

The President also mentioned that the government is striving to make payments to a large number of companies by the end of this month. He added that efforts are underway to clear the backlog of payments by the time Ramadan commences.

During last night's meeting, some business owners also raised concerns regarding businesses operated by foreigners and the payment of demurrage fines in US dollars.