MIRA records 59 percent decline in state revenue for Nov

Maldives Inland Revenue Authority (MIRA), on Wednesday, revealed that government revenue for the month of November had decreased by 59.9 percent compared to the previous year.

As per monthly statistics publicised by the authority, a total of MVR 461.49 million was collected as revenue in November.

MIRA attributed the decrease to the impact of the ongoing COVID-19 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.

MIRA also noted that the Lease Period Extension Fee collected in November 2019 was not received this year, further reducing overall state revenue.

The highest revenue in November was collected from GST at 66.9 percent or MVR 308..68 million, followed by Income Tax at 9.1 percent or MVR 54.39 million.

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 estimates 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.

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.

Maldives welcomed its 100,000th tourist on December 12. As per official projections, 500,000 tourists will arrive before the end of 2020.

Although authorities have noted a significant reduction in tourist arrivals compared to pre-COVID figures, there has been a gradual increase with the establishment of travel bubbles between Maldives and other countries, as well as greater connectivity in terms of flight operations.