Audit reveals over MVR 461 million in uncollected customs revenue

The Maldives Customs Service has over MVR 461 million in uncollected revenue, according to the Auditor General's audit report for the year 2023. The report states that as of the end of 2023, the total outstanding receivables stood at MVR 461,016,716, of which more than MVR 160 million is in the enforcement stage, having been unpaid for a long period. In 2023, Customs collected a total of MVR 2.5 billion in revenue, accounting for 11% of the state's total tax revenue for the year. The audit highlighted risks in duty calculation and tariff classification, but confirmed that the financial statements were prepared in accordance with international standards. The report noted that despite efforts to recover the outstanding amounts, the arrears have increased from 2020 to 2022. However, MVR 10.1 million of the outstanding sum was recovered after the end of 2023. To address the recovery challenges, the Auditor General has recommended strengthening recovery measures against defaulters, consulting with relevant authorities, and pursuing cases where court judgments have not been enforced. The report also calls for amending laws and regulations to establish a robust system for recovering duties after exemptions or rebates. On the expenditure side, Customs spent MVR 248.4 million from its budget in 2023, with MVR 194.3 million going to salaries and allowances, MVR 17.4 million on office operations, and MVR 26 million on capital expenditure. The staff welfare fund had a balance of MVR 2.3 million at year-end, and outstanding loans to employees amounted to MVR 4.9 million. The audit report was signed by Auditor General Hussain Niyazi.