The tax revenue generated in June experienced a decline as a result of the extension period granted for tax payment.
Last month, the state received MVR 1.2 billion in tax revenue, reflecting a decrease of MVR 400 million compared to June 2022. During the same period last yar, the government had collected a total of MVR 1.6 billion in taxes.
According to the Maldives Inland Revenue Authority (MIRA), tax revenue saw a 30 percent decline due to the decreased income tax and tourism land rent revenue. This decline is attributed to the extension provided for the payment of these taxes.
The largest source of tax revenue in June was the Tourism Goods and Services Tax (TGST), amounting to MVR 266 million. This represents a decrease of MVR 100 million compared to the amount received during the same period last year. Additionally, Goods and Services Tax collection in June 2023 amounted to MVR 207 million.
The total tax revenue received in May 2023 amounted to MVR 1.7 billion.
Goods and Services Tax was increased from 6 percent to 8 percent, while the Tourism Goods and Services Tax (TGST) was raised from 12 percent to 16 percent from January of this year. In the first month following this change, tax revenues received amounted to MVR 3.4 billion. However, since then, tax revenue has displayed a consistent decline.
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