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MIRA orders India's GMR to pay USD20 mln in taxes, penalties

Fathmath Shaahunaz
03 June 2018, MVT 22:14
Former President Mohamed Nasheed pictured with officials of India's GMR Group at the main airport of the Maldives.
Fathmath Shaahunaz
03 June 2018, MVT 22:14

Maldives Inland Revenue Authority (MIRA) has ordered GMR Group of India to pay USD 20.5 million (over MVR 360 million) in taxes and penalties to the Maldivian government.

According to Indian media, the tax authority late last year ordered GMR, which had been awarded operations of the Maldives' main airport during the regime of former President Mohamed Nasheed, to pay USD 20.5 million as Business Profit Tax (BPT), Withholding Tax and penalties.

Reports cited an official of GMR that the company did not believe it owed the settlement to the Maldivian government. The official further stated that GMR was now awaiting a comment from Maldives Airports Company Ltd (MACL), which currently runs the main airport.

After Nasheed's government, the administration of former President Mohamed Waheed had terminated the contract with GMR and seized back the airport. Consequently, Singapore International Arbitration Centre ordered the Maldives to pay USD 270 million to GMR as compensation. The government has since settled the payment.

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