Maldives Monetary Authority (MMA) Governor Dr Ahmed Munawar has called on the Maldives Inland Revenue Authority (MIRA) to audit resorts, saying only about 50 of the country’s roughly 150 resorts pay income tax.
Munawar spoke at Parliament’s Budget Review Committee. He said the figures came from MIRA and raised questions about whether resorts are truly making no profit.
“From the figures shared with us by MIRA, we understand that out of around 150 resorts, only about 50 pay income tax. Income tax is paid by just 50 resorts,” he said.
“What does that mean? Either there is no profit or there are some issues. So doesn’t that mean they need to be audited?”
The governor said MIRA carries a heavy responsibility for collecting tax on business profits and should get more powers to do that work.
“MIRA shouldn’t only go to corner shops. We also need to check if our tourism figures are correct,” he said.
Munawar also said the authorities will tighten rules next year to make sure more US dollars enter the banking system.
He said only $3.8bn of the $5.9bn that should come into Maldivian banks currently does. That leaves a gap of $2.1bn.
“So to bring in more dollars, we will tighten rules further next year. We will observe and monitor this. It has to be monitored,” he said.
“If it isn’t monitored, those dollars do not enter the Maldivian banking system. And if they don’t enter the banking system, they won’t actually circulate in the Maldives.”
