Speaking at the official ceremony in celebration of the Maldives’ 59th Independence Day, President Dr Mohamed Muizzu revealed that a total sum of USD 513 million has been owed to the state over the years.
The President's Office
The Maldives is currently struggling with a significant debt crisis, an issue that has been brewing for years. A critical factor contributing to this financial turmoil is the consistent neglect by successive administrations in addressing the substantial amounts owed to the state by various businesses. These debts are often in the form of unpaid rents and taxes. Annually, the Maldives Inland Revenue Authority (MIRA) publishes a list of businesses that have significant outstanding payments to the government. This list has highlighted a persistent problem: while ordinary citizens face severe repercussions for failing to pay even minor fines, many large businesses and resorts, which generate millions or even billions in revenue each year, continue to operate without settling their substantial debts to the state.
Despite these businesses accruing considerable profits, they repeatedly fail to pay their dues, yet face little to no consequences. This disparity in the treatment of ordinary citizens versus wealthy businesses exacerbates the nation’s financial woes and undermines public trust in the fairness and effectiveness of the government's fiscal policies. The lack of stringent enforcement measures against these powerful entities has allowed the debt to accumulate unchecked, pushing the Maldives deeper into its current economic crisis.
Although there were talks about how resort owners and businesses should face their debts and settle the due payments to the state, exact figures and the extent of the unpaid debt on the Maldivian economy were revealed by the President of the Maldives Dr Mohamed Muizzu recently. Speaking at the official ceremony in celebration of the Maldives’ 59th Independence Day, President Dr Mohamed Muizzu revealed that a total sum of USD 513 million has been owed to the state over the years. Although these large sums of money are due payments which can be acquired by the corporations through the legal system, Dr Mohamed Muizzu noted that former administrations have neglected these due payments, leading to the amount increasing to such a significant number. The president also further went into detail, explaining the forms of debt that corporations owe to the state. According to Dr Mohamed Muizzu, corporations owe a total of USD 102 million in TGST, and MVR 3.3 billion in GST, and MVR 1 billion in corporate income tax.
As the Maldives is still in the process of implementing several measures to resolve its debt crisis, Dr Mohamed Muizzu noted that settling this amount and collecting the due payments alone will be able to resolve a large sum of the debt problem in the Maldives. With this, he also noted that the work has been started in order to recover these funds, as multiple parties have started to pay their dues upon receiving notices.
