Auditor General: Unpaid Government Bills Driving Tax Non-Payment

Auditor General Husain Niyazee stated today that the amount of uncollected tax revenue is increasing annually, primarily because the government is failing to pay the money it owes to companies. Speaking at a meeting of the committee studying the proposed state budget for next year, Niyazee noted that according to records, approximately MVR 22 billion in expected tax revenue has not been received. Citing the Maldives Inland Revenue Authority (MIRA), he explained that a key reason is the government's non-payment of funds due to companies undertaking state-entrusted tasks. Niyazee highlighted that while a large portion of government debt to companies remains unpaid, the next year's budget does not include provisions to raise the needed funds. He emphasized the importance of the Finance Ministry finding ways to pay these bills and urged members to obtain solutions from the government. The government owes companies approximately MVR 7 billion. Earlier this month, arrangements were established allowing tax dues to be deducted if an office fails to receive owed funds, with requests to be submitted to MIRA under specified procedures. President Dr. Mohamed Muizzu announced last December that a mechanism would be established to reduce taxes through government payments.