Tax revenue in April rises above projections to MVR 1.41 billion

Maldives Inland Revenue Authority (MIRA) collected MVR 1.41 billion as tax revenue last April, beating revenue forecasts for the month by a steep 82.6 percent.

The monthly revenue collection report released by MIRA shows the tax revenue collected last April is also 173.8 percent higher than the tax revenue collected in the same period last year.

MIRA attributed the increase in tax revenue to an increase in collection of major taxes such as TGST, GST, Green Tax, Airport Development Fee, Airport Service Charge, Income Tax, Tourism Land Rent. The authority also collected a significant amount arrears, which amounted to 20 percent of the tax revenue collection in April.

Another reason for the variance in tax revenue collected in April this year and April last year is the lockdown imposed to curb the spread of COVID-19 last year, which resulted in a steep decline in tourism sector and the whole economy, leading to a drop in tax revenue.

The taxable sales reported by resorts last April were significantly higher than the forecast, as were tourist arrivals and collection of tourism-related taxes.

The biggest contribution to tax revenue in April came from GST. MIRA collected MVR 849.61 million as GST, which made for 60.1 percent of the total revenue.

The second biggest contribution to tax revenue came from Tourism Land Rent. MIRA collected MVR 139.12 million as Tourism Land Rent, which made for 9.8 percent of total revenue.

MIRA also collected MVR 95.54 million as Green Tax, MVR 75.58 million as Income Tax, MVR 40.26 million as Business Profit Tax, and MVR 214.56 million other taxes and fees.

The 1.41 billion collected as tax revenue in April includes USD 66.05 million.