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Govt revenue reaches MVR 994 million in February

13 March 2021, MVT 20:57
The Ministry of Finance in the capital city of Male'. PHOTO: MIHAARU
13 March 2021, MVT 20:57

Maldives Inland Revenue Authority (MIRA) revealed that a total of MVR 994.12 million was collected as government revenue in February.

Despite representing a 30.9 percent fall compared to the revenue collected in February 2020, the figure exceeded initial projections amid the economic repercussions of the COVID-19 pandemic.

According to MIRA, the amount collected as government revenue exceeded projections by 41.2 percent due to improvements in the tourism industry, which subsequently increased Tourism Goods and Services Tax (TGST), Green Tax, Tourism Land Rent and Airport Service Charge.

Goods and Services Tax (GST) contributed to the majority of revenue with MVR 672.79 million, followed by Income Tax which accounted for MVR 107.47 million. MIRA also collected MVR 63.54 million as Green Tax.

The restrictions on international travel in 2020 due to the ongoing pandemic left Maldives' heavily tourism reliant economy in an extremely vulnerable state. In mid-April last year, the World Bank projected that Maldives would be the worst-hit economy in the South Asian region due to COVID-19.

However, following the border reopening on July 15, 2020 after a four-month closure to curb the spread of infections, the number of tourist arrivals has steadily begun to increase, renewing hopes to revitalise the economy.

Despite the entire industry screeching to a halt due to preventive measures taken to curb the spread of the virus, Maldives hit its target for 500,000 tourists in 2020, with an impressive recovery curve.

With renewed hope, the government expects to attract over 1.5 million tourists in 2021. Minister of Tourism Dr Abdulla Mausoom, on several occasions, stated that this year would be a "very successful" year for Maldivian tourism.

According to the Ministry of Tourism, a total of 200,871 tourists had arrived in Maldives as of March 4.

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