MIRA reports a 93% revenue increase in September 2024

The Maldives Inland Revenue Authority (MIRA) announced a remarkable 93 percent increase in revenue for September 2024 compared to the same period last year, showcasing that more companies in the Maldives are adhering to the tax laws in addition to a positive change in terms of the increase in internal revenue of the country. According to the statistics from MIRA, the total revenue collected for the month of September stood at MVR 2.3 billion. 

Some of the major contributors towards this increase in revenue include the Goods and Services Tax (GST), Tourism Goods and Services Tax (TGST), and the resort lease fees. In recent years, due to increased debt in the country, the Maldives has seen a rise in both GST and TGST rates. However, with resort lease fees also being a significant contributor to government revenue, the figures demonstrate the crucial role that tourism-related income plays in sustaining the country’s financial stability amidst growing fiscal challenges. In addition to this, income tax as well as departure tax played a key role in the positive increase in revenues for September 2024. 

The key drivers of revenue growth for September 2024 are as follows:

Another positive highlight reported by MIRA was the collection of MVR 102 million in tax payments made in US dollars. Out of this total, 60 percent came from Tourism Goods and Services Tax (TGST) and resort fees, underscoring the pivotal role that the tourism sector plays in generating foreign currency for the Maldives. This influx of US dollars not only highlights how deeply intertwined the tourism industry is with the nation's economy but also demonstrates its potential to alleviate the ongoing dollar shortage that has been a persistent issue for the country. 

By contributing a substantial portion of foreign currency inflows, the tourism sector acts as a lifeline for maintaining a healthy exchange reserve and stabilizing the local currency. As the Maldives continues to rely heavily on imports for essential goods, services, and debt repayments, the steady flow of dollars from tourism revenue becomes increasingly vital in managing the country’s financial needs and addressing its currency challenges. 

With these figures, MIRA reports a total of MVR 1.2 billion difference in the amount collected compared to the same time in 2023. The figures show that the Government collected MVR 1.1 billion during September 2023, and MVR 2.3 billion in September 2024, showcasing how much the Maldivian economy, particularly the tourism sector, has grown in the past year.

With this, MIRA’s report for September 2024 indicates a significant improvement in the country’s revenue collection, primarily due to the strength of the tourism sector. With more than MVR 22 billion collected in the first nine months of the year, the Maldivian economy appears to be headed towards a positive trajectory.