Last year, MIRA collected MVR 21 billion in tax revenue, of which USD 950 million, which accounts to 59 percent of total tax revenue, was in dollars.
The state could boost its tax revenue by USD 120 million (MVR 1.8 billion) if companies earning income in US dollars were required to pay taxes in that currency, said Commissioner General of Taxation Hassan Zareer today.
In August, the government decided to amend the Pension Act, Income Tax Act, and Maldives Inland Revenue Authority (MIRA) Act to increase dollar-based revenue, with the Attorney General's Office currently working on the changes.
In an exclusive interview with Mihaaru News, Zareer said the proposed change would raise income tax revenue to USD 80 million annually, while corporate governance tax would contribute an additional USD 120 million.
"We are currently receiving USD 950 million annually. This year, we are forecasting to reach USD 1 billion," Zareer said.
Last year, MIRA collected MVR 21 billion in tax revenue, of which USD 950 million, which accounts to 59 percent of total tax revenue, was in dollars.
Dollar denominated tax revenue increased by six percent due to hikes in the Tourism Goods and Services Tax (TGST) and airport development fees. The TGST increase followed the rise in tourism GST to 16 percent.
As of August this year, tax revenue stood at MVR 17 billion, with more than MVR 8 billion, equivalent to USD 574 million collected in US dollars.
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