Maldives Revenue Surges 34.4% to MVR 2.94 Billion in March 2023

Maldives sees 34.4% surge in March 2023 revenue, driven by tourism recovery and higher tax collections, highlighting the country's economic resilience.

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Maldives Revenue Surges 34.4% to MVR 2.94 Billion in March 2023

Maldives Revenue Surges 34.4% to MVR 2.94 Billion in March 2023

The Maldives Inland Revenue Authority (MIRA) reported a significant increase in revenue for March 2023, with collections surging 34.4% compared to the same period last year. Total revenue stood at MVR 2.94 billion ($190.3 million), including $119.67 million received in US dollars, representing a substantial rise from the MVR 2.1 billion collected in March 2022.

According to MIRA, the revenue growth was primarily driven by higher collections from bank income tax, Tourism Goods and Services Tax (TGST), tourism land rent, and non-resident withholding tax. The influx of tourist arrivals in March also contributed to the increased revenue. MIRA noted that the March 2023 revenue was 26% higher than their forecast.

The largest share of revenue came from Goods and Services Tax (GST) at MVR 1.52 billion, followed by income tax at MVR 589.65 million. Other significant revenue sources included tourism land rent, green tax, and airport development fee.

Why this matters: The substantial revenue growth in the Maldives highlights the country's economic recovery and the resurgence of its tourism industry following the challenges posed by the COVID-19 pandemic. The increased revenue will support the government's efforts to maintain fiscal stability and fund development projects.

MIRA's Commissioner General of Taxation, Fathuhulla Jameel, expressed satisfaction with the revenue performance, stating, "The March 2023 revenue collection exceeded our expectations and demonstrates the resilience of the Maldivian economy. We are optimistic about sustaining this positive trend in the coming months."

Key Takeaways

  • Maldives MIRA reported 34.4% revenue increase in March 2023 to MVR 2.94 billion.
  • Revenue growth driven by higher collections from bank income tax, TGST, tourism land rent.
  • March 2023 revenue 26% higher than MIRA's forecast, indicating economic recovery.
  • Largest revenue sources were GST (MVR 1.52 billion) and income tax (MVR 589.65 million).
  • MIRA optimistic about sustaining positive revenue trend in the coming months.