The Maldives government collected a quarterly revenue of MVR 5.36 billion for the last quarter of 2022, the Maldives Inland Revenue Authority (MIRA) reported.
MIRA revealed that state revenue was up by 25.1 percent when compared with the same period in 2021. Revenues also went up by 53.9 percent from initial projections.
The highest increase in the quarterly revenue was recorded from Lease Period Extension Fees, Income Tax, GST, and Airport Taxes and Fees. Tourist arrivals from September to November 2022 exceeded the arrival numbers in 2021 by 2.7 percent which led to an increment in tourism receipts.
The quarterly revenue exceeded the projections mainly due to the increase in GST, especially the Tourism Goods and Services Tax (TGST). A receipt of USD 72.50 million in Lease Period Extension Fee also contributed to the revenue increase compared to the projection.
MIRA projected MVR 2.67 billion in tax revenue for the review quarter but collected MVR 3.24 billion. For non-tax revenue, the authority projected just MVR 0.80 billion but collected MVR 2.11 billion.
Compared to the review quarter, the government collected MVR 3.01 billion in tax revenue and MVR 1.27 billion in non-tax revenue in the final quarter of 2021.
With this, tax revenues collected in the review quarter increased by 7.7 percent compared to the corresponding period in 2021 and by 21.2 percent from the projection. Non-tax revenues collected in the fourth quarter of 2022 increased by 66.5 percent compared to the fourth quarter of 2021 and by 162.9 percent from the projection.
- Increase in tourism receipts because of high tourist arrivals during the quarter
- Increase in departures and change in the departure tax being levied based on flying class (effective from January 1, 2022) boosted Departure Tax
- Payments received prior to the Income Tax deadline resulted in an increment in the tax
- Goods and Services Tax (GST): MVR 2.39 billion (44.6 percent)
- Lease Period Extension Fees: MVR 1.11 billion (20.8 percent)
- Tourism Land Rent: MVR 470.73 million (8.8 percent)
- Income Tax: MVR 404.21 million (7.5 percent)
- Green Tax: MVR 213.70 million (4.0 percent)
GST collection increased by 3.2 percent compared to the last quarter of 2021 and by 18.5 percent from the projection. The total TGST collected during the review quarter was MVR 1.53 billion, which is a 2.7 percent decline from the same quarter in 2021 but still a 19.6 percent increase from the projection. The total GGST collection for the quarter was MVR 854.47 million, which is a 15.7 percent improvement from the fourth quarter of 2021 and a 16.5 percent increment from the projection.
Tourism Land Rent declined by 19.9 percent when compared with the same period in 2021; however, it observed an increase of 14 percent from the projection.
Income Tax saw a 37 percent gain compared to the last quarter of 2021 and a 53.7 percent increment from the projection. Additionally, Green Tax dropped by 5.8 percent compared to the corresponding quarter of 2021. However, it was a mild 0.8 percent increment from the projection.
During the quarter, the sixth amendment to the Goods and Services Tax Act (No: 20/2022) and the 29th amendment to the Goods and Services Tax Regulation (No: 2022/R-217) were implemented.
Additionally, MIRA held 26 information sessions targeting taxpayers, which were attended by over 400 participants. The authority also held 12 training sessions, which were attended by 306 participants.
MIRA also launched a Certificate 1 Taxation in the Maldives study program, which had 15 sessions and attracted 272 participants.