Eydhafushi MP Ahmed Saleem has said that only those who evade taxes oppose tougher measures against tax evasion and non‑compliance.

Speaking during the debate on amendments to the Tax Administration Act, he stressed the importance of the reforms, noting that more than MVR 15 billion in revenue remains overdue due to evasion and late payment.

Saleem argued that compliant taxpayers are penalised indirectly, as state income losses from evaders must be absorbed elsewhere. With debt repayments looming in the coming years, he said improved compliance is essential to sustain government finances.

He added that tax rates in the Maldives are comparatively low by international standards and reiterated that only evaders have cause to object.

Dhiggaru MP Ahmed Nazim also backed the bill, saying it would help curb the misappropriation of funds, abuse of authority in independent institutions, and the concealment of wealth.

The Government has sent a bill to the People’s Majlis to amend the Tax Administration Act, introducing tougher penalties for tax evasion and late filing.

Key changes include replacing home confinement for wilful non-filing with a prison term of one to six months and a fine of up to MVR 250,000. In serious cases of deliberate evasion, the prison term could extend to three years.

The bill also seeks to raise daily late-payment penalties from 0.05% to 0.1% of the unpaid tax and introduce a fixed daily fine of MVR 50 for overdue returns. It outlines new rules for serving official notices, including delivery by post, email, MIRA’s online portal, or in person.

The Government says the amendments aim to improve compliance and ensure penalties match the seriousness of offences.