Proposed Amendments to MIRA Act to Strengthen State Debt Collection

Attorney General Ahmed Usham has announced that amendments to the Maldives Inland Revenue Authority (MIRA) Act will be introduced soon, aimed at granting the authority broader powers to enforce tax compliance and recover all debts owed to the government.

According to Usham, while MIRA was effective in its enforcement duties prior to 2020, amendments made to the Tax Administration Act during former President Ibrahim Mohamed Solih's administration had curtailed the agency's powers.

The new amendments, expected to be submitted to parliament soon, will restore MIRA's enforcement abilities, allowing it to tackle the significant challenges in collecting billions of Maldivian Rufiyaa (MVR) owed to the State.

Recent statistics reveal that MIRA is owed MVR 10 billion, which includes MVR 4.3 billion in resort rent and MVR 5.5 billion in unpaid taxes.

Usham highlighted that current enforcement limitations have hampered the agency’s ability to recover these significant amounts. At present, MIRA is only empowered to collect taxes, while the responsibility of recovering other forms of state dues lies with the Attorney General’s Office.

However, the proposed amendments will transfer the authority for collecting all state dues, including non-tax payments, entirely to MIRA, providing the agency with enhanced powers to recover the amounts owed.