The state revenues increased by 25.1% in the final quarter of 2022, reports Maldives Inland Revenue Authority (MIRA).
According to MIRA’s recent update, the state collected a quarterly of MVR5.36 billion in the review quarter. This was also a 53.9% increment over initial projections for the period.
The highest increment in the quarterly revenue, compared to Q4-2021, was recorded from Lease Period Extension Fee, Income Tax, GST, and Airport Taxes and Fees, said MIRA.
Moreover, tourist arrivals from September to November 2022 exceeded tourist arrivals in 2021 by 2.7%, which led to a favorable outcome in tourism-related taxes and fees for the review quarter.
MIRA further claimed quarterly revenue exceeded forecast due to the increment in;
- GST (mainly from TGST)
- Income Tax
- Tourism Land Rent
- Airport Taxes and Fees
Additionally, the receipt of USD72.50 million as a Lease Period Extension Fee led to an increment in revenue compared to the projection.
The actual tax revenue for Q4-2021 was MVR3.01 billion, and the actual non-tax revenue for the same period was MVR1.27 billion; total quarterly revenue of MVR4.28 billion.
The actual tax revenue for Q4-2022 was MVR3.24 billion, and the actual non-tax revenue for the same period was MVR2.11 billion; total quarterly revenue of MVR5.36 billion.
The projected revenue for Q4-2022 was MVR2.67 billion, and the projected revenue for the review quarter was MVR0.80 billion; the projected quarterly total of MVR3.48 billion.
Revenue in Q4-2022
The state collected MVR3.24 billion during the review quarter, which was a 7.7% increment when compared with Q4-2021. This was also a 21.2% increment from initial projections.
As for non-tax revenue, the state collected MVR2.11 billion during the final quarter last year, which was a 66.5% increment when compared with Q4-2021. Moreover, this was a staggering 162.9% improvement from initial projections.
Tax Revenue – Reasons for Improvement
- Tourist arrivals exceeded during the review quarter when compared with the corresponding quarter of 2021 by 2.7% which led to an increment in Departure Tax
- Departure Tax is levied based on flying class effective from January 1, 2022, resulting in a higher collection of Departure Tax
- Though no deadlines for Income Tax fell into the quarter, payments received for prior deadlines led to the increment in Income Tax collection
Non-tax Revenue – Reasons for Improvement
- Mainly from Lease Period Extension Fee, Work Permit Fee, and Airport Development Fee
- Higher collection of Airport Development Fee; owing to the change of the rate of the fee based on the flying class of passengers effective from January 1, 2022
Top Revenue Contributions of Q4-2022
01 – GST collection was recorded at MVR2.39 billion in Q4-2022, and MVR2.01 billion was projected. The collection was recorded at MVR2.31 billion in Q4-2021.
02 – The lease Period Extension Fee was recorded at MVR1.11 billion in Q4-2022 while the projection for the review was nil. The collection was at just MVR230.2 million in Q4-2021.
03 – Tourism Land Rent reached MVR470.7 million during the review quarter, while it was projected at MVR413.0 million. The revenue stream observed a decline during the review quarter since the state collected MVR588.0 million in Q4-2021.
04 – Income Tax collection stood at MVR404.2 million in Q4-2022; projection stood at MVR263.0 million. The collection had reached only MVR295.0 million in Q4-2021.
05 – Green Tax collection reached MVR213.7 million during the review quarter, while the projection was slightly below at MVR212.0 million. The state collected MVR227.0 million in tax during Q4-2021; indicating a decline during the review quarter.
Top Revenue – Percentage Change
- GST: +3.2% (Compared to Q4-2021) | +18.5% (Compared to Projection) | 44.6% (Share of Q4-2022)
- Lease Period Extension Fee: +383.2% | — | 20.8%
- Tourism Land Rent: -19.9% | +14.0% | 8.8%
- Income Tax: +37.0% | +53.7% | 7.5%
- Green Tax: -5.8% | +0.8% | 4.0%