President Muizzu announces tax deduction policy for businesses owed money by government

President Dr. Mohamed Muizzu has announced a new mechanism allowing businesses to deduct taxes owed to the state from payments due to them from the government. Under the new policy announced on Sunday, businesses can offset taxes and other dues to the Maldives Inland Revenue Authority (MIRA) against outstanding payments owed to them by government institutions and state-owned enterprises. The deduction can only be processed once the government pays the outstanding amount to MIRA on behalf of the business. President Muizzu made the announcement during a meeting where he acknowledged receiving numerous complaints from businesses, particularly small and medium enterprises, about delayed payments from the government causing financial difficulties. The president has previously made clearing government debt to businesses a key election promise, having set six deadlines before the parliamentary and local council elections that were not met.