The Maldives Inland Revenue Authority (MIRA) has reported a total revenue collection reaching MVR 5.84 billion for Q2 2024, reflecting a 12.6% increase compared to the same period last year. Tax revenues accounted for 82.2% of total collections, while non-tax revenues contributed 17.8%.
Key Revenue Contributors
- Goods and Services Tax (GST) remained the primary revenue source, generating MVR 3.30 billion, including MVR 2.16 billion from Tourism GST (TGST), which grew by 19.8% from Q2 2023.
- Tourism Land Rent generated MVR 420.75 million, a 19.7% year-on-year increase, driven by the ongoing recovery in the tourism sector.
- Departure Tax and Airport Development Fee also saw increases, contributing MVR 286.38 million (+15.5%) and MVR 291.76 million (+14.7%), respectively.
Tax Recovery Efforts
MIRA successfully recovered MVR 639 million in unpaid taxes and fees during the second quarter, bolstering government revenue. Of this, MVR 515 million was collected through reminders and notices sent to delinquent taxpayers over the past six months. Additional efforts yielded MVR 93 million via debt clearance, MVR 21 million from freezing bank accounts, and MVR 12 million from overdue payments. Smaller sums were recovered through taxpayer reminders (MVR 135,000) and court proceedings (MVR 10,000).
Despite these efforts, the government remains owed a significant MVR 10 billion, including MVR 5.5 billion in taxes and MVR 4.3 billion in resort rent.
Audit and Compliance Actions
MIRA conducted 83 audits in the past six months, leading to the identification of MVR 93 million in additional taxes owed. The audits focused on several areas, including:
- Business Profit Tax (BPT): 14 audits
- General Goods and Service Tax (GGST): 10 audits
- Tourism GST (TGST): 17 audits
- Income Tax: 37 audits
- Green Tax: 5 audits
Additionally, 10,796 individuals were flagged for failing to file tax returns, and 8,947 individuals were identified as tax evaders. To ease the burden on defaulters, MIRA has introduced installment plans, allowing 162 taxpayers to repay MVR 364 million in installments.
Decline in Corporate and Bank Income Taxes
While the overall revenue performance was positive, Corporate Income Tax saw a 11.4% decline, collecting MVR 507 million. Similarly, Bank Income Tax fell by 71.7% to MVR 78.61 million, reflecting challenges in these sectors.
USD Revenue Growth
The collection of USD-denominated revenues rose significantly to USD 236 million (MVR 3.62 billion). Tourism-related taxes and fees account for the bulk, underscoring the nation’s reliance on foreign currency inflows from the tourism sector.
