The June 2024 revenue report for the Maldives indicates a significant financial performance, with total revenue collection amounting to MVR 2.05 billion. This figure represents a 26.8% increase compared to June 2023, primarily driven by higher collections in Corporate Income Tax, Goods and Services Tax (GST), and Tourism Land Rent. The absence of deadline extensions for income tax filing and payment, unlike in the previous year, contributed to this growth.
However, the revenue for June 2024 fell short of the forecast by 28.8%. This shortfall is mainly attributed to a decline in the collections of Corporate Income Tax, Bank Profit Tax, and Tourism Land Rent. Taxpayers had made advance payments for these taxes earlier in the year, impacting the expected revenue for June. Additionally, non-payment issues affected the GST and Tourism Land Rent collections.
The USD revenue collection for June 2024 stood at 76.57 million, with Tourism Goods and Services Tax (TGST) being the largest contributor at 35.7%, followed by Tourism Land Rent and Income Tax.
Refunds and adjustments for June 2024 included MVR 7.99 million in tax revenue adjustments and MVR 1.01 million in cash refunds. These adjustments were due to offsets claimed by taxpayers for advance tax payments, and the cash refunds were for excess payments made by taxpayers.
A historical comparison from 2020 to 2024 shows fluctuating revenue collections, with 2024 demonstrating a significant recovery from the previous year’s lower figures. The total revenue collected in 2024 was MVR 2.05 billion, a notable improvement from the MVR 1.62 billion collected in 2023.
While the June 2024 revenue collection showcases robust growth compared to the previous year, it highlights the challenges in meeting forecasted targets due to advance payments and non-payment issues. The Maldives continues to rely heavily on key sectors such as tourism and taxation for its revenue, indicating a need for ongoing strategic financial management.
