The Tourism Goods and Services Tax (TGST) hike has increased the state’s revenue by 65 percent.
According to the statistics released by the Ministry of Finance, TGST and Goods and Services Tax (GST) collection stood at MVR 1.6 billion at the end of last month. From this, TGST collection stood at MVR 1.2 billion. TGST and GST collection stood at MVR 1 billion during the same period last year.
GST collection stood at MVR 405 million at the end of January, while GST collection during the same period last year stood at MVR 298 million. The state saw a 70 percent increment in GST collection this year.
The state increased GST from six to eight percent and TGST from 12 to 16 percent from January 1, 2023. Earlier, TGST was 12 percent and GST was 6 percent.
The government received a total of MVR 3.4 billion in taxes last month. This is a 70 percent increase compared with the same period last year.
Business and Property Tax collection stood at MVR 1.3 billion. Business and Property Tax is the second highest revenue source next to TGST and GST.
In 2023, the state expects to gain a total of MVR 13.2 billion from TGST and GST collections.
Despite the increase in tax revenues, non-tax revenues fell by 60 percent from last year. While non-tax revenues stood at MVR 403 million last month, the state had collected MVR 650 million as non-tax revenues during the same period in 2022.
As of February 2, 2023, total state revenues stood at MVR 3.8 billion. This is an increase of about 70 percent compared with last year.
The state budget estimates that the government will receive MVR 32 billion in revenues by the end of this year. Of this, MVR 24 billion is expected to be tax revenues.