The Maldives Customs Service failed to collect over MVR 477 million in revenue by the end of 2022, according to a compliance audit report released by the Auditor General’s Office. 

The audit, covering financial years 2020 to 2022, revealed that as of 2022, total outstanding dues stood at MVR 477,915,625. Of this amount, MVR 398 million, approximately 83 per cent, comprised of unpaid import duties, while MVR 77.2 million remained uncollected in fines and penalties. Notably, MVR 322.7 million of the total outstanding revenue had remained unpaid for more than three years.

Despite legal provisions under the Customs Act to recover unpaid dues, the report highlighted several challenges faced by the agency, including prolonged litigation and delays in the enforcement of court orders. As a result, more than MVR 160 million remained unrecovered despite court rulings in favour of Customs.

The report also drew attention to the non-payment of duties on temporarily imported goods. In cases where items were not re-exported within the designated timeframe, importers became liable for duties and fines. In 2022 alone, MVR 226 million in such dues remained unpaid. The audit attributed these failures to delays in communication with importers and lapses in notifying relevant ministries.

Officials from Maldives Customs cited difficulties in tracing importers and ensuring compliance, particularly in cases involving temporary imports for economic or commercial use. The report also noted weaknesses in inter-agency coordination, which hindered timely action on duty violations.

In response, the Auditor General has recommended strengthening enforcement strategies and improving collaboration between Customs and other Government institutions. The report called for timely case tracking, enhanced legal follow-up, and procedural reforms to address persistent gaps in revenue collection.