The Maldives recorded a substantial increase in revenue collection for September 2024, totalling MVR 2.3 billion, representing a 93.1% rise compared to the same period in 2023. This growth is primarily driven by the increase in Goods and Services Tax (GST), Tourism Goods and Services Tax (TGST), and Tourism Land Rent, alongside revenues from Lease Period Extension Fees and Land Acquisition and Conversion Fees.
The Maldives Inland Revenue Authority (MIRA) attributed this revenue surge to the collection of payments delayed last year due to public holidays, which had deferred some revenue to October 2023. With no such delays this year, and the collection of dues from GST, Corporate Income Tax, and Airport Taxes and Fees, September 2024 saw a marked improvement in revenue.
Additionally, the implementation of the 13th Amendment to the Maldives Tourism Act resulted in several resorts opting to extend their lease periods to 99 years, contributing significantly to the increased revenue through Lease Period Extension Fees, which are paid at the discretion of the taxpayer.
Revenue for September 2024 surpassed projections by 28.7%, driven largely by the unexpected receipt of Lease Period Extension Fees and payments for newly leased islands. Furthermore, tourist arrivals were 8.1% higher than anticipated, boosting tourism-related revenue streams.
Foreign currency revenue collection also saw a rise, with USD 102.05 million collected in September 2024. Key contributors to this included TGST, Tourism Land Rent, and Lease Period Extension Fees, accounting for nearly 75% of the total foreign currency revenue.
The strong performance in September reflects the resilience of the Maldivian tourism sector and the effectiveness of the country’s revenue collection strategies. As the Maldives approaches the final quarter of the year, the increased revenue provides a positive outlook for the nation’s fiscal position.
