State income would have a slight increase this year

Maldives Inland Revenue Authority (MIRA) estimates that the state income would have a slight increase in 2019.

According to the Annual Report of 2018, MIRA estimates that the state would generate an income of MVR 16.36 billion in 2019.This is a 2.7 percent increase in the income compared to the amount generated the previous year.

Statistics of MIRA shows that the state failed to acquire the estimated amount of income in the last two months.  MVR 1.09 billion generated in May was 5.5 percent lower than the estimated amount.

MIRA says that the decrease income was due to the decrease in income generated from Business Profit Tax (BPT) from the banks.

Additionally, income received in March was 14.5 percent lower than the estimated amount. MIRA states that this is because Tourism Goods and Services Tax and resort rents were not paid by some businesses.

The ongoing government’s policy is to generate income of the state through Income Tax. Government plans to submit the bill to the Parliament before the end of June.

According to the Agenda 19 policies, 3.5 percent Income Tax would be taken from those who generate between MVR 60,000 – 100,000 as income per month and 6.5 percent from those who generate MVR 100,000 – MVR 150,000 per month.

It is projected that there are 60,000 people who are eligible for income tax in Maldives.