A bill has been introduced in parliament to increase the powers given to the Maldives Inland Revenue Authority (MIRA) and increase the tax penalties.
The bill was proposed by Villimale' MP Mohamed Ismail. The bill aims to review the powers of the MIRA in collecting tax revenue and increase the penalties for tax offences.
Currently, the law imposes a penalty of 0.05 percent of the amount owed if the tax is not paid on the due date. The government is changing the penalty to 0.1 percent of the outstanding amount.
This means a business that owes MVR 500,000 will be fined MVR 250 per day at the current rate. However, at the new rate, the amount will be MVR 500 per day.
Additionally, the new bill proposes a jail term of one to six months and a fine of MVR 250,000 for failing to file tax returns or information.
The bill comes amid increasing concern from private businesses over outstanding payments owed by the government.
