State revenue growth has slowed following a decline in tourist arrivals linked to the conflict involving Iran, with the Maldives Inland Revenue Authority (MIRA) reporting lower collections last month compared to April of the previous year.
According to MIRA’s latest tax collection report, the agency collected MVR 2.62 billion last month. This is a decrease of MVR 7 million compared to the MVR 2.63 billion collected in April last year.
Despite the slowdown in growth, total revenue collected by the end of last month remains MVR 2.1 billion higher than the previous year, bolstered by a record-breaking MVR 11.2 billion collected during the first quarter of this year.
Of the MVR 14.3 billion collected by MIRA so far this year, MVR 4 billion was received in local currency, while the remainder was collected in US dollars. During the first four months of the year, MIRA received USD 660.8 million, an increase of USD 91 million compared to the same period last year.
Tax revenue for last month amounted to MVR 2.1 billion, while non-tax revenue stood at MVR 439 million.
MIRA noted in its report that previous forecasts had been revised downward in anticipation of the decline in tourist arrivals. The actual collections for last month were 16 percent higher than the revised projections.
While tourist numbers have slipped due to the regional conflict, there is a possibility of further declines during the current off-peak season. However, the government and tourism industry stakeholders remain hopeful that the situation will improve toward the end of the year.
