Commissioner General of Taxation Hassan Zareer has said positive progress in the Maldives Inland Revenue Authority’s (MIRA) efforts to recover outstanding debts. Speaking to PSM News, Zareer highlighted that MIRA is currently engaging with individuals and entities that owe significant amounts of money. As a result of these efforts, he said that the authority has started seeing tangible outcomes, with revenue collections exceeding initial projections. He also noted that revenue collected in July was 15% higher than expected, while August saw a 33% increase, and September recorded a 31% increase. Additionally, Zareer noted that the culture of regular tax payment has improved, partly due to tax exemptions. He said that MIRA has held meetings with 80 individuals to remind them of their tax obligations, with 80% cooperating. He, however, said that 20% of the individuals have not complied, and the authority plans to take appropriate actions against those who fail to pay. MIRA has said that a total of approximately USD 1 billion in tax and non-tax revenue, including fines. The figure consists of USD 454 million in tax revenue and an equal amount in non-tax revenue. To promote accountability, the authority has begun publishing the names of those who fail to file tax returns or pay their taxes.
The wealthy receive 45% of Subsidies while the poor get just 8%
The World Bank’s recent report, “Maldives Development Update – Seeking Stability in Turbulent Times,” reveals that the wealthiest in the Maldives benefit disproportionately from the country’s universal subsidy system. The report discusses the effects of government spending cuts and subsidy adjustments, noting that while subsidies in many countries are typically directed toward low-income households, the Maldives’ current approach fails to adequately support its most vulnerable populations.
According to the World Bank, government revenues are allocated to various subsidies aimed at providing essential services, including education, the Aasandha program for all citizens, and fuel and food subsidies through State Trading Organization (STO). However, these subsidies are not specifically designed to target those in greatest need.
The report highlights that about 43% of subsidies go to the wealthiest segments of society, benefiting the richest 40%. This represents 4.1% of the national budget. Notably, the top 10% of earners receive 13% of these subsidies, which accounts for only 2% of their income, while the bottom 10% receive a mere 8%.
The World Bank emphasizes the government’s intention to shift from a blanket subsidy approach to one that specifically aids the most vulnerable groups. Without such a reform, the poverty rate in the Maldives could rise from 2.5% to 4.6% if subsidies were eliminated altogether, with single parents and families with more than three children being particularly impacted.
To mitigate the effects of subsidy cuts, the World Bank estimates that a budget of USD 78.2 million will be required. It recommends that subsidies be allocated to 60% of low-income households, suggesting an increase in support for the lowest income earners to 20%. Furthermore, the report stresses the need for the government to implement a comprehensive system to accurately assess household income and monitor living conditions effectively.
Gov’t initiates efforts to launch comprehensive masterplan against thalassemia
The government has announced plans to launch a comprehensive national masterplan, aiming to reduce the number of thalassemia cases reported. Efforts to combat thalassemia in the Maldives began in 1994 with the establishment of the National Thalassemia Centre. However, the lack of significant infrastructural development or enhancement of services at the centre over the past 30 years has raised concerns among thalassemia patients and their respective families Notably, previous governments did not pay much attention to this issue. Despite the Thalassaemia Control Bill being ratified in 2012, it has not been strongly implemented. The Thalassemia Prevention Law emphasises the need for increased public awareness to curb the spread of thalassemia, the establishment of a sustainable treatment system for patients, and monitored by a legally empowered director general. The centre is required to operate nationally under the Ministry of Health’s guidance. Additionally, a special fund must be established to support and enhance thalassemia prevention efforts. Furthermore, the law also mandates the provision of family planning and counselling for thalassemia carriers, with the goal of reducing the annual birth rate of children born with the condition. However, other than mandating individuals to undergo thalassemia testing and obtain a thalassemia card prior to marriage, there has been substantial action taken to implement this law. Since 2015, thalassemia patients have been given the opportunity to undergo bone marrow transplants with assistance from the Zakat Fund, a programme which the government intends to continue annually. Currently, there are 944 registered thalassemia patients in the Maldives, with 659 children currently alive. According to a study conducted in 2014, public awareness on thalassemia is relatively low. Aiming to address this issue and reduce the birth rate of thalassemia children, the government has been exerting efforts to draft a masterplan against thalassemia. Additionally, the government has allocated 17,000 square feet of land for the construction of a Thalassemia Hospital in Hulhumale’ Phase II. The Ministry of Health has disclosed that the hospital will include 38 inpatient beds, 62 outpatient beds, and 20 private rooms. Furthermore, the facility will be equipped with Intensive Care Units (ICUs) and private surgical theatres, along with a dedicated department for bone marrow treatment.
Gov’t to assess the wealth of natural resources in Maldives
Minister of Climate Change, Environment and Energy Thoriq Ibrahim announced that the Endheri project launched to assess the wealth of natural resources in the Maldives will be rolled out across the country. He made the remarks during the handover ceremony for the “Endheri Small Grants 2024”, in Fonadhoo, Laamu Atoll. The event marked the allocation of USD 97,724 to three local associations. Additionally, USD 390,896 was donated to the island council for the effective management of protected areas within the atoll. Emphasizing the significance of evaluating natural resources, Minister Thoriq noted that while many foreign nations recognize the value of such resources, critical assets in the country like reefs, and marine ecosystems remain largely unassessed. He highlighted that the Endheri project aims to create natural capital accounts for the atoll and will be implemented nationwide. As part of the Endheri project, the University of New South Wales (UNSW) was contracted to conduct assessments of the country’s natural resources. A team from UNSW is scheduled to visit Maldives in November to share the findings of the studies and provide training to relevant institutions.
UNDP plays a pivotal role in shaping Maldives’ developmental path: President
President Dr. Muizzu has emphasised the critical role of the United Nation Development Programme (UNDP), in shaping the Maldives’ development path. The remarks were made by the president during his address at the ceremony marking the 45th anniversary of UNDP in the Maldives. The commemorative event was attended by members of the cabinet and key figures from the UNDP.
Speaking at the ceremony, President Dr. Muizzu stated that 45 years marks a significant milestone in the partnership between the Maldives and the United Nations. The president highlighted that this collaboration has been crucial in addressing the aspirations and challenges faced by the Maldivian people. He further noted that the Maldives-UNDP partnership is rooted in shared principles of progress, development, and human dignity, demonstrating a commitment to sustainable development and a future in which all Maldivians have the opportunity to flourish.
Reflecting on UNDP’s early role in the country, President Dr. Muizzu recalled the Maldives’ transformation from one of the least economically developed nations to a modern, resilient, and forward-looking country. The president noted that UNDP has broadened its focus over the years, addressing not only basic development needs but also more recent initiatives centred on climate resilience, economic diversification, social inclusion, women’s empowerment, good governance, and institutional reform.
Furthermore, President Dr. Muizzu also revealed his vision of transforming the Maldives into a fully developed nation by 2040, with a strong focus on the digital economy and sustainable development. He concluded his speech by thanking the United Nations for its enduring and invaluable contribution to the nation over the years.
During the ceremony, Minister of Foreign Affairs Dr. Abdulla Khaleel shed light on the history of the Maldives-UNDP partnership. The minister recognised the collective efforts of the UNDP and the government to develop the Maldives. He additionally expressed confidence in UNDP’s steadfast support to developing Small Island Developing States (SIDS) to more innovative and resilient nations, prioritising the Maldives.
UNDP began operations in the Maldives in 1978. At the ceremony held to mark the 45th anniversary of this partnership, President Dr. Muizzu officiated the Island Life magazine’s latest number. The event also featured UNDP-funded art displays showcasing Maldives’ development history.
ECM proposes amendment to fund parties with less than 10,000 members
The Elections Commission of the Maldives (ECM) has proposed an amendment to the law to allow political parties with fewer than 10,000 members to receive funding from the state budget.
The ECM has submitted these proposed changes to the Political Parties Act to the Attorney General’s Office (AGO). The commission said that the amendments have been discussed with political parties since 2019. The ECM is recommending two key changes to the Political Parties Act. The amendments regarding the organization of party congresses and the other concerning party funding
Currently, only parties with 10,000 or more members are eligible for state funding. However, under the proposed amendment, the budget allocated to political parties would be divided into four parts: for all parties with at least 3,000 registered members, parties with 10,000 members, and based on the parties’ performance in parliamentary and local island council elections. Specifically, 25% of the funds would be allocated to all registered parties, 25% to parties with 10,000 members or more, 30% based on parliamentary election results, and 20% based on local council election results.
The ECM convened a meeting with political parties on October 8 to discuss the proposed reforms. The representatives from the Dhivehi Rayyithunge Party (DRP), Jumhooree Party (JP), the Maldives Development Alliance (MDA), and the Maldives National Party (MNP) attended, contributing further suggestions for the amendments.
Additionally, the ECM is currently discussing the reforms with the National Party in the hope of agreeing to all of its suggestions, including the change in the payment method.
The amendments are expected to be approved by the National Assembly, however a decision by the executive council has not yet been taken.
(The name of the amendments is not available, so this is a placeholder.)
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Category:2019 in the Maldives