Govt collects MVR 5.84 bil revenue in second quarter, up 12.6 percent

The Maldives government has collected a quarterly revenue of MVR 5.84 billion in the second quarter of 2024, according to Maldives Inland Revenue Authority (MIRA).

According to MIRA, this revenue collection in the review quarter is a 12.6 percent increment compared to the same quarter last year, but a 10.7 percent decline from projections.

The increase in revenue for the review period is attributed to:

• An increase in tourist arrivals for the taxable period of Q2-2024 (from March 2024 to May 2024) by 5.2 percent compared to the same quarter in 2023
• Taxable bed nights subject to green tax reported via the green tax returns submitted for Q2-2024 increased by 7.4 percent
• Departures from March to May increased by 4.7 percent

For the review quarter, state earned 82 percent of its revenue from tax sources and the remaining 18 percent from non-tax sources.

The total tax revenue collection for the quarter is MVR 4.80 billion, which is a 13.1 percent increase compared to the same quarter in 2023, but an 11.5 percent decline from projection.

On the other hand, the total non-tax revenue collection for the review quarter stood at MVR 1.04 billion, which is a 10.2 percent increase from the 2023 second quarter but a 6.8 percent decline from projection.

The total revenue collection for the quarter includes 236.02 million collected in US dollars as well, which is an 18.6 percent increase compared to the same quarter last year.

Currency Composition

• Revenue in USD: 62.0 percent | USD 236.02 million (MVR 3.62 billion)
• Revenue in MVR: 38.0 percent | MVR 2.22 billion

Top Revenue Contributors

1. Goods and Services Tax: MVR 3.30 billion | 56.5 percent
2. Income Tax: MVR 956.01 million | 16.4 percent
3. Tourism Land Rent: MVR 420.75 million | 7.2 percent
4. Airport Development Fee: MVR 291.76 million | 5.0 percent
5. Departure Tax: MVR 286.38 million | 4.9 percent

The total GST collection saw a 19.5 percent increase during Q2-2024 compared to the same quarter in 2023. MIRA reports that 65.4 percent of the GST collection relates to the tourism sector, with the remaining 34.6 percent related to the general sector.

MIRA conducted 1,657 compliance visits during the review quarter and completed 7 criminal investigations related to tax evasion.

The authority also enforced the collection of MVR 639.3 million from various liable parties.

Additionally, MIRA filed two legal cases during the review quarter, while 14 judgements in cases were passed in favor of the authority.

There were 15 other cases filed against MIRA and 1 judgement passed against the authority during the review quarter as well.