The latest financial report from the Maldives Inland Revenue Authority (MIRA) reveals a slight decrease in the country’s total revenue collection for May 2024. The total revenue collected in May 2024 amounted to MVR 1.66 billion, marking a 4.8% decrease compared to the same period in 2023.
The decline in revenue is primarily attributed to lower collections in Corporate Income Tax, General Goods and Services Tax (GGST), and Airport Taxes and Fees. Notably, there was no income tax deadline in May, which led to a drop in payments compared to May 2023 when some taxpayers opted to pay in advance. Additionally, GGST collections saw a slight decline due to non-payment by the deadline, and a 0.9% decrease in April 2024 departures compared to April 2023 further impacted Airport Taxes and Fees.
Despite this overall decline, the revenue for May 2024 exceeded projections by 0.8%, largely due to increased collections of Non-Resident Withholding Tax and Tourism Land Rent. Specifically, reported and paid Non-Resident Withholding Tax from the telecommunications sector and advance payments for Tourism Land Rent contributed to this increment.
Key Revenue Sources
• GST: 66.19% of total revenue
• Income Tax: 9.0%
• Airport Development Fee: 5.83%
• Departure Tax: 5.66%
• Green Tax: 5.15%
• Others: 8.17%
USD Revenue Contributions
• TGST: 70.48%
• Airport Development Fee: 9.41%
• Departure Tax: 9.18%
• Green Tax: 8.35%
• Tourism Land Rent: 1.24%
• Others: 1.34%
The total USD revenue for May 2024 amounted to USD 66.57 million. The significant contributors to USD revenue were Tourism Goods and Services Tax (TGST), Airport Development Fee, and Departure Tax.
Refunds and Adjustments
Adjustments and refunds also played a role in the overall revenue figures. Tax revenues saw adjustments of MVR 1,128,161.71, and cash refunds amounted to MVR 3,079,068.79. These adjustments include offsets claimed by taxpayers for advance tax payments, and the cash refunds represent excess payments made by taxpayers.
Historical Revenue Trends
A look at the revenue trends over the past five years shows significant growth, with 2024 displaying a slight dip compared to 2023. The total revenue for the years were:
• 2020: MVR 204.4 million
• 2021: MVR 787.2 million
• 2022: MVR 1,313.1 million
• 2023: MVR 1,739.5 million
• 2024: MVR 1,656.5 million
This fluctuation is attributed to various factors, including changes in tax payments and the impact of tourism departures. The report highlights a mixed financial outlook for the Maldives, with certain revenue streams performing well against forecasts while overall revenue sees a slight year-on-year decline.
The government’s efforts to manage revenue collection and address the factors impacting these figures will be crucial in maintaining fiscal stability and supporting economic growth.
