2023’s GST jump mainly contributes for surge, Q4-2023 revenue at MVR 5.91B

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Tourism industry is a significant driver in tax revenue receipts | Photo: Mihaaru

The total revenue collection for the final quarter of 2023 stood at MVR 5.91 billion, a 10.0% increase compared to the corresponding quarter in 2022.

According to Maldives Inland Revenue Authority (MIRA), this increment is mainly due to the increase in the revenue collection of TGST, GGST, Green Tax, Tourism Land Rent and Airport Taxes and Fees along with the commencement of Expatriate Quota Fee during last year.

Moreover, the Tourism Land Rent for the final quarter last year and the first quarter of 2024 was due during Q4-2023, due to which Tourism Land Rent increased during the review quarter compared to Q4-2022.

Furthermore, effective January 01, 2023, the GST rates for TGST and GGST increased resulting in a higher GST collection overall and throughout the year.

Despite this, Corporate Income Tax and Employee Withholding Tax decreased compared to the revenue collected in Q4-2022. Besides this, there were no payments made to extend the lease period of resorts during the review quarter.

MIRA also ceased the collection of Vessel Fee, Vehicle Fee and traffic violation charges – all of which have since been transferred under the Ministry of Transport and Civil Aviation – except for USD payments.

During the review quarter, the total collection of tax revenues stood at MVR 4.56 billion; a staggering 40.3% increment from Q4-2022 and an 8.6% increase from initial projections.

On the other hand, non-tax revenue total stood at MVR 1.35 billion; a significant 36.3% decline while this is a 16.9% increment from initial projections.

From the total revenue collection, MIRA reports a total of 244.64 million was collected in US dollars; which is a 1.1% drop compared to Q4-2022.

Top Revenue Contributions

  1. Goods and Services Tax: MVR 3.66 billion (61.9%)
  2. Tourism Land Rent: MVR 564.91 million (9.6%)
  3. Income Tax: MVR 386.10 million (6.5%)
  4. Green Tax: MVR 258.93 million (4.4%)
  5. Airport Development Fee: MVR 247.21 million (4.2%)

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