Maldives Monetary Authority Governor Ahmed Munawar has called on the Maldives Inland Revenue Authority to audit resorts, saying only about 50 of the country’s roughly 185 resorts pay income tax.
The Governor made the remarks at the People’s Majlis budget committee while responding to questions about the difficulty of obtaining US dollars.
He said that while the tourism industry earns around USD 5.9 billion a year, only USD 3.8 billion of that enters the Maldivian banking system.
According to figures shared with the MMA by MIRA, only about 50 of 185 resorts pay income tax, he said. Either they are not making a profit, or there are some issues, the Governor noted.
He argued that MIRA should not limit its checks to small corner shops but must also examine the accounts of the tourism sector.
If every dollar earned by the Maldives entered the local banking system, it would be enough to meet the public’s needs, he added. The central bank plans to tighten rules next year to ensure more foreign currency enters the banking system.
MIRA has responded that its audits follow a risk-based approach and that tourism sector businesses are already subject to scrutiny. The authority said it applies tax laws equally regardless of business size.
