The Maldives government has collected a total revenue of MVR 5.19 billion in Q2-2023, a 2.4% drop compared to the same quarter in 2022.
Despite this drop, revenues collected to the government was a 5.8% increment compared to initial projections.
According to the Maldives Inland Revenue Authority (MIRA), the decline in Q2-2023 compared to the same quarter last year was mainly due to the drop in the collections of the Corporate Income Tax, Lease Period Extension Fee, Tourism Land Rent, and Land Acquisition and Conversion Fee.
Lease Period Extension Fee had not been collected since January 2023.
Additionally, from January 1, 2023 onwards, collection of vehicle and vessel fees, and the collection of parking and traffic violation have been changed to Ministry of Transport and Civil Aviation which contributed to the decrease in the revenue collected through MIRA compared to Q2-2022.
However, GST, Bank Income Tax, Non-resident Withholding Tax and Airport Taxes and Fees were higher than the revenue collected in Q2-2022.
The deadline for the submission of Income Tax return and final payment for the tax year 2022 had been deferred to July 9, 2023 since the deadline fell on a public holiday. This resulted in the decline in the Income Tax collection for the quarter.
Moreover, the initial deadline for the Tourism Land Rent for the third quarter was a public holiday, and as such the deadline was deferred to July 2, 2023 which led to a slight decrease in the collection compared to the corresponding quarter last year.
On the other hand, tourist arrivals for the taxable period of Q2-2023 (from March to May) are 10.3% higher than the corresponding quarter in 2022, due to which TGST and Airport Taxes and Fees improved.
The quarterly revenue exceeded forecast due to the increment of Corporate Income Tax, Airport Taxes and Fees, and Bank Income Tax.
The state collected MVR 4.25 billion out of the total in tax revenue, which is a 6.4% increment compared to Q2-2022, and a 5.3% increment from initial projections.
Additionally, the state collected MVR 940.80 million in non-tax revenues during the review quarter which is a significant 29.0% decline when compared with the corresponding quarter in 2022, but a 7.9% increment from initial projections.
Top Revenue Contributors
- GST: MVR 2.76 billion | 53.2%
- Income Tax: MVR 993.54 million | 19.2%
- Tourism Land Rent: MVR 351.37 million | 6.8%
- Airport Development Fee: MVR 254.41 million | 4.9%
- Departure Tax: MVR 248.03 million | 4.8%