The Maldives Inland Revenue Authority (MIRA) has reported that the country’s total revenue collection for October 2024 reached MVR 1.73 billion. This represents a 14.2% decline compared to the same period last year. The decrease is largely attributed to the lack of adjustments in payment deadlines for key taxes, unlike in October 2023, when deadlines for GST, Airport Taxes, Green Tax, and Tourism Land Rent were extended due to a public holiday.
Despite the year-on-year decline, revenue for October 2024 exceeded forecasts by 30.5%. This better-than-expected performance was driven primarily by higher-than-projected Goods and Services Tax (GST) collections, alongside significant contributions from Land Acquisition and Conversion Fees, Green Tax, and Airport Taxes. The recent enforcement measures to recover outstanding GST dues also played a crucial role in boosting collections.
Additionally, the Maldives saw a 2.1% rise in tourist arrivals in September, which positively impacted tourism-related taxes in October. The Land Acquisition and Conversion Fee, an irregular revenue stream tied to government leases of islands, further contributed to the surge in collections beyond expectations.
MIRA’s data highlights that GST remains the largest contributor to the country’s revenue, accounting for 63.1% of the total collection. Income Tax and Land Acquisition and Conversion Fees followed, contributing 6.7% and 5.5% respectively. In terms of foreign currency revenue, Tourist Goods and Services Tax (TGST) made up 61.3% of the total USD collection, with significant inputs from Land Acquisition Fees, Green Tax, and Airport Development Fees.
While the figures for October 2024 indicate strong performance against projections, the decline compared to October 2023 underscores the volatility in tax collections, especially when influenced by adjustments to payment schedules and fluctuating tourist arrivals. As the government continues to rely on tourism-driven revenue, sustaining these gains will be critical amidst an evolving economic landscape.
