The Maldives Inland Revenue Authority (MIRA) has released it’s first quarterly report of 2014, revealing that a total revenue of MVR2.78 billion was collected – an increase of 10.5 percent on the corresponding period in 2013.
91.5 percent of revenue was collected from five sources: Goods and Services Tax (GST) – 12.7 percent, Tourism Goods and Services Tax (T-GST) – 31.9 percent, Business Profit Tax – 27.9 percent, Tourism Land Rent – 9.3 percent, Tourism Tax (bed tax) – 5.3 percent, and Airport Service Charge – 4.4 percent.
MIRA noted that increased collection of fines for nonpayment as well as a “significant” rise in Land Sales Tax collected (0.3 percent).
59 percent of the total revenue was collected in US dollars – 29.5% more than the share of the previous quarter’s collection, and 7.7% more than the first quarter of 2013. The rise was driven largely by increased revenue from GST, Airport Service Charge, and Business Profit Tax – which grew by 24.7 , 45.1, and 16.4 percent respectively compared with twelve months ago.
MIRA’ s revenue streams are set to further increase from next month as telecommunications services will be subject to GST for the first time. T-GST is also scheduled to increase from the current rate of 8 to 12 percent in November, although the bed tax will be withdrawn in the same month.
The current government is considering a number of revenue-raising measures in order to address the MVR3.4 billion (US$224 million) shortfall in this year’s record MVR17.95 billion budge.