State revenue drop 59.6% in earnings for April 2020

Popular

The total revenue earned for the month of April 2020 was recorded at MVR527.47 million as per Maldives taxation authority.

Maldives Inland Revenue Authority (MIRA) while confirming the earnings for the previous month, further added the revenue dropped by 59.6%.

Maldives borders were closed on 27 March 2020 as per preventive measures against Covid-19, and on-arrival tourist visas were cancelled.

Tax deadlines on the other hand have been extended due to the ongoing total lockdown exercised across the entire Greater Male’ Region. The deadline will remain stretched until the re-opening of MIRA.

These were, as per the taxation authority, the major reasons for the decrement in revenue for the review month.

Maldives state earned 23.36 million out of the total revenue of April, in US Dollars.

Goods and Services Tax (GST) covered 44.7% of the total revenue and Tourism Land Rent took up 25.2% of the revenue. Revenue from Business Profit Tax (BPT) accounted for just 7.0% of the total earnings.

MIRA attests MVR336.0 million were generated into state from tax sources and MVR191.5 million from non tax sources. This is a major decline in comparison with the earnings made in April 2019.

In April 2019, the authority reported MVR1,111.5 million were earned as tax revenue and MVR193.8 million from non-tax sources. The total revenue earned during the said month was recorded at MVR1.3 billion.

Maldives is currently experiencing one of the worst economic detriments it has faced in recent history.

The major economic components of the country remain idle, especially the most prime sector; tourism, came to a standstill with the border closure by Maldives government.

Meanwhile, several other sectors continue to worsen in its conditions as the lockdown continue – and has been stretched once again by another 14 days; effective until 28 May 2020.

 

Comments