Penalties nets MVR 145 million to state budget

A total of MVR 145 million (US$ 9.4 million) has been added to the state coffers – a figure earned by penalizing citizens.

Finance Ministry statistics show that from January to July 14th, the state has earned MVR 145 million (US$ 9.4 million) from penalties. This figure was at MVR 122 (US$ 7.9 million) for the same period last year.

Finance Ministry had estimated that MVR 62.4 million (US$ 4.1 million) would be earned from penalties for the whole fiscal year. This estimate has been significantly bypassed.

Back in 2018, then-candidate Ibrahim Mohamed Solih pledged that his administration would not function on penalties. He had also pledged that parking penalties would not be implemented without creating parking spaces.

While this pledge has been conveniently forgotten, the Government is keen on forgiving penalties that resorts owe the state. As such, the Government had already ordered Maldives Inland Revenue Authority (MIRA) to refund resorts’ penalties by MVR 30.8 million.