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Revenue up in Sept with resort rent increase

Fathmath Shaahunaz
11 October 2016, MVT 13:23
The resort St. Regis Maldives being developed in the island of Vommuli in Dhaalu atoll is set to be unveiled September 1.
Fathmath Shaahunaz
11 October 2016, MVT 13:23

Government revenue spiked for the month of September due to an increase in rent payments from resorts.

According to official statistics released Tuesday by Maldives Inland Revenue Authority (MIRA), the state had recorded a revenue of MVR 1.11 billion in September, which is an increase of 24.6 percent from the previous year. The record is also 0.3 percent higher than the projected estimate for last month.

MIRA attributed the increase of rent payment from resorts as the main reason for the revenue spike.

While rent fees from resorts had increased, the Maldives has unveiled a string of new resorts with nine more to be opened before the end of this year. The government had also declared that another twenty will be unveiled next year, including top international luxury brands.

Summary of state revenue for September

Goods and Services Tax (GST): MVR 449.1 million (40.6 percent of total revenue)

Rent payments from resorts: MVR 328.38 million (29.7 percent)

Business Profit Tax (BPT): MVR 79.3 million (7.2 percent)

Penalty fees: MVR 65.82 million (6 percent)

Green Tax: MVR 54.74 million (5 percent)

Other taxes and fees: MVR 128.44 million (11.6 percent)

The total revenue for this year by the end of September was MVR 11.39 billion, which is an 8.1 percent increase from 2015.

The spike in government revenue in September was heralded by low numbers in the previous two months. The state had recorded a revenue of MVR 1.35 billion in July, which is a decrease of 17.2 percent last year, and MVR 1 billion in August, which is a 13.4 percent drop from 2015.

The state budget of MVR 27.5 billion for 2016 had projected a revenue of MVR 21.5 billion, the bulk of which is to be earned via increased taxes and new taxes. Accordingly, the government had put into effect Green Tax from resorts, hotels and safaris, and recently guesthouses this year.

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