Maldives Inland Revenue Authority (MIRA) has made its upcoming Goods and Services Tax (GST) regulation available for public opinion.
The regulation goes into effect on October 2. It will open for public opinion on the MIRA website until Wednesday evening, Haveeru reports.
The regulation was made according to suggestions from the business community, and includes procedures on levying the goods and services tax.
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(0)Recruitment agencies are newly required to pay visa fees for expatriate workers for at least three months, according to new policies at Maldives Inland Revenue Authority (MIRA).
The visa fees of Rf250 were previously payable every month. Under the new policy, agencies will be required to submit at least Rf750 when making payments, Haveeru reports.
A MIRA authority told Haveeru that the policy was designed by the Immigration Department.
Recruitment agencies expressed concern over the policy change, allegedly because of the difficulty of providing larger sums of money at once. Others have claimed that it’s a waste of money on workers who are imported for a single month of work.
(0)Dislikes(0)The Maldives Association of Construction Industry’s (MACI) annual exhibition concluded today at the Dharubaaruge Centre in Male’, after enduring three days of gloomy weather and a lower-than-expected turnout.
The annual event showcased over twenty construction companies and their newly developed or imported products. Sales people interviewed said that the event was a significant business opportunity each year, and that sales were expected to improve.
“Every year we are introducing new products,” said Ali Shaathir of MUNI Homecare. “These products have a good impact on construction–they are safer, and friendly to the environment.”
Veligaa Hardware representative Muaz Mohamed said that construction would continue to “boom” in the Maldives. “You can always see construction on Male, and Hulumale is just beginning to boom,” he said.
Other companies represented included Humaru Maldives, Polytechnic Maldives, Thilafalhu Industrial Zone, and Habitat. Several observed that resort construction played a significant role in the industry.
One construction sector said to interest resorts is renewable energy. Earlier this week, President Mohamed Nasheed told an international audience in London that the Maldives needs to become carbon neutral.
Renewable Energy Maldives (REM) representative Maufooz Abdullah said that although eco-construction isn’t prominent, it is growing. “People are actually interested here and in resorts, and some are even buying our products,” he said.
REM currently sells solar-hybrid air conditioning units to residents and businesses around the country. These units recover their cost in two years, and are said to be used across Male. Abdullah said that use of REM products could reduce pollution “by 30 to 60 percent”.
“We hope environmentally friendly construction practices grow in the Maldives, it’s catching on slowly but we hope it moves faster.”
Abdullah said the MACI exhibition was valuable to the industry, but wished more people would benefit from it.
“I think it’s a very important event for educating people about the industry, but I don’t see too many people coming in.”
Maldives Income Revenue Authority (MIRA) said that construction was important to the Maldivian economy. Representatives noted, however, that the new Goods and Services Tax (GST) bill, due to become active on 2 October, will “have an effect on wholesale and customer prices.”
(0)Dislikes(0)The Maldives Inland Revenue Authority (MIRA) has invited Goods and Services Tax (GST) payers to register with the authority before September 30.
The GST bill passed last month comes into force on October 2 following its ratification by President Mohamed Nasheed on September 2.
Businesses that offer goods and services worth over Rf1 million over the course of a year would have to register to pay the GST.
Registration forms are available from the MIRA website.
(0)Dislikes(0)Maldives Inland Revenue Authority (MIRA) has said it will give priority to levy the Goods and Services Tax (GST) from merchants who import and sell goods at wholesale prices, reports Haveeru.
The GST bill, which was ratified by President Mohamed Nasheed last Friday, is required to be implemented within a month from ratification.
Commissioner General of Taxation, Yazeed Mohamed, told Haveeru that tax deductions from wholesalers will be the second major source of income. He said certain industries such as construction, food and entertainment would be given higher priority.
Yazeed said the act will be fully implemented in three months, but that administrative tax regulations had to be amended as well, Haveeru reported.
GST payers will be asked to register at MIRA.
(0)Dislikes(0)The Maldives Inland Revenue Authority’s (MIRA) board has yet to decide whether to follow a directive from the Finance Ministry to accept tax payments in local currency, Haveeru reports.
A MIRA official explained that laws such as the Tourism Act and Tourism Goods and Services Tax Act stipulated that payments must be made in US dollars.
“The services for which payments can be legally charged with the local currency will be charged accordingly from today, like the Airport Service Tax. It is stated that this tax can be charged in local currency. Also, some agreements do not specify a particular currency and so if both sides agree fees under such agreements will also be received in Rufiyaa,” the official told Haveeru.
MIRA board member Abbas Adil Riza meanwhile said that “MIRA’s administrative employees will follow the board’s instructions and not directives of the Finance Ministry. We are trying to implement laws.”
In a bid to alleviate the acute dollar shortage affecting the country, cabinet decided last week that all fees and taxes collected by the government must be paid in Dhivehi rufiya.
While the Maldives Association of Construction Industries (MACI) welcomed the move, the association’s President Mohamed Ali Janah told Haveeru yesterday that the government should also find alternative sources of revenue in US dollars.
“The way I see it, the government is taking on the dollar burden previously put up with by the businesses and individuals. If so the government has to come up with alternative sources of dollar income. If the government is also to obtain dollars from the market, the shortage will increase in magnitude,” he said.
(0)Dislikes(0)The Maldives Inland Revenue Authority (MIRA) has filed a case at the Civil Court today to recover over US$2.5 million owed to the state by Giraavaru Island Resort owner Abdul Rauf, M. Sunrose.
Haveeru reports that the US$2.5 million was incurred as fines for non-payment of lease rent. The resort had failed to make timely rent payments for the past three years.
MIRA calculated the fine at 0.5 percent of the amount due for every additional day after the rent payment deadline.
The tax collection authority appealed today for a court order to compel Rauf to make the payments in full. The judge adjourned the first hearing after providing a ten-day period for Rauf to respond to the claim.
(1)Dislikes(0)The Ministry of Agriculture and Fisheries last month revoked the lease agreements for five islands rented for economic or industrial purposes.
Haveeru reports that the Maldives Inland Revenue Authority’s (MIRA) recommendation to revoke the licenses was prompted by non-payment of rent and fines going back to 2005.
The islands include Shaviyani Ekasdhu (Rf12 million), Noonu Kalhaidhu (Rf8 million), Noonu Bandaidhihdhu (Rf9 million), Baa Maa Maduvvari (Rf5.9 million) and Gaaf Alif Fonahdhu (Rf1.7 million).
According to Haveeru, MIRA sent notices to Zuleyha Hafeez, Manager of Shaviyani Ekasdhoo, Moosa Naseer, Manager of Noonu Bandaidhihdhu, Noonu Kalhaidhu Manager Adam Naseer, Maduvvari Investment which manages Baa Maa Maduvvari and Abdulla Abdul Azeez who manages Gaaf Alif Fonahdhu.
An official from MIRA said that in addition to revoking licenses the owners would be sued for non-compliance with the lease agreements.
(0)Dislikes(0)The Maldives Inland Revenue Authority (MIRA) has recovered over Rf125 million (US$8.1 million) in outstanding debts owed to the state during its first year of operation.
Speaking at a ceremony last night to celebrate MIRA’s first anniversary, Commissioner General of Taxation Yazeed Mohamed said that recovering the outstanding debts was one of its main achievements in the past year as the institution had “given up hope” of collecting the money.
Yazeed said that MIRA was able to recover Rf125 million from debts that it was prepared to write off due to the “sincere efforts of the enforcement team,” according to local media reports.
MIRA has filed 11 cases at court to recover unpaid rents and fines, said Yazeed, three of which were ongoing while an additional two cases have been settled out of court.
An audit report of the former department of inland revenue released in October 2009 revealed that it had failed to collect over Rf1.1 billion (US$85 million) in unpaid taxes, resort rent and fines.
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