According to data released by the Maldives Inland Revenue Authority (MIRA), state revenue collection for March was MVR 2.19 billion, 1.2% lower than the revenue of MVR 2.2 billion in March 2022.
The decline in revenue was attributed to a decrease in the revenue of certain types of taxes, mainly Corporate Income Tax and Non-Resident Withholding Tax Receipts due to the deadline for final payment of income tax for 2022 expiring in March. In addition, tourism land rent receipts were reduced, as the deadline for payment has been extended to April.
Despite the overall decrease, some of the highest earning segments for MIRA last month included GST, tourism land rent, income tax, green tax, and airport development fee. However, the contribution of other taxes and fees was only 10.1% of the revenue.
Furthermore, MIRA received USD 100.99 million in dollars last month, bringing the total income in dollar terms to USD 287.3 million by the end of March.
The decline in state revenue collection in March is a cause for concern, as it can affect the government’s ability to fund essential services and programs. It remains to be seen if the extension of the deadline for tourism land rent payment will result in a rebound in revenue collection in the coming months.