Finance Ministry proposes seven new revenue measures for the government

Finance Ministry has proposed seven new revenue measures for the government.

The proposals were penned down in the Ministry’s ‘Medium Term Fiscal Strategy 2022-2024’ – which has been submitted to the Parliament. They are:

1.          Changing the Airport Service Charge and Airport Development Fee rates: The bill on this has been passed by the Parliament and has also been ratified by the President. It will be implemented starting from January 1, 2022.
2.           Real estate tourism/development of new resorts: Dividends would be received from tourism real estate. MVR 100 million is expected to be received from resort development in 2021; MVR 350 million in 2022; MVR 550 million in 2023.
3.           Expatriate quota fee: Estimated to receive revenue from January 2022 onwards
4.           Increasing resident permit fee: Estimated to receive revenue from January 2022 onwards
5.          Sale of land: In planning stages. MVR 150 million is expected to be received in 2021; MVR 525 million in 2022; MVR 825 million in 2023.
6.          Spectrum change: A study to be conducted on spectrum auction with the help of USAID. MVR 60 million is estimated to be received in 2022.
7.          Congestion charge/parking fee: At planning stage – but expected to be implemented by this year. MVR 9 million is estimated to be received in 2021; MVR 73.2 million in 2022.

As per the report, the Ministry is estimating a budget of MVR 37 billion for next year. The medium-term baseline budget includes the projected expenditure on existing recurrent programs and activities, and the expenditure on ongoing projects. It is set at a level that can ensure continuity of public services and the efficient operation of government agencies.

A budget deficit of MVR 10.1 million is expected next year.