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MIRA records 57 percent decline in state revenue for Oct

Mariyam Malsa
11 November 2020, MVT 18:03
Maldives Inland Revenue Authority (MIRA) revealed that the monthly state revenue for October fell by 57 percent compared to the same period last year. PHOTO: MIHAARU
Mariyam Malsa
11 November 2020, MVT 18:03

Maldives Inland Revenue Authority (MIRA), on Wednesday, revealed that government revenue for the month of October had decreased by 57.9 percent compared to the previous year.

As per monthly statistics publicised by the authority, a total of MVR 390.57 was collected as revenue in October.

MIRA attributed the decrement to the impact of the ongoing COVID-10 pandemic on the tourism industry of Maldives, which contributes to two-thirds of the country's GDP.

According to MIRA, fewer tourist arrivals led to lower economic activity, which in turn caused a drop in the collection of Goods and Services Tax (GST) and Green Tax.

The highest revenue in October was collected from GST at 63.3 percent or MVR 247.42 million, followed by Income Tax at 13.4 percent or MVR 54.39 million. Business Profit Tax (BPT) accounted for MVR 20.31 million while Residential Permits and Vehicles fees contributed MVR 18.54 million and MVR 9.34 million respectively.

The government projected a shortfall of approximately USD 450 million (MVR 6.9 billion) in foreign currency and a state deficit of MVR 13 billion in 2020 as a result of the COVID-19 pandemic's impact on the tourism industry.

The restrictions on international travel due to the ongoing pandemic left Maldives' heavily tourism reliant economy in an extremely vulnerable state. In mid-April, the World Bank projected that Maldives would be the worst-hit economy in the South Asian region due to COVID-19.

Maldives reopened its borders to international passengers on July 15, after nearly four months since the state halted issuing on-arrival visas on March 27. Guesthouses were permitted to resume operations and kick start local tourism on October 15.

Despite the lifting of restrictions, Maldives has noted a significant reduction in tourist arrivals compared to pre-COVID figures. While a total of 382,760 tourists were recorded before borders were closed in March, the latest figures by the Ministry of Tourism show that only 37,468 tourists arrived in Maldives between July 15 and October 28.

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