The Maldives Inland Revenue Authority (MIRA) has reported a substantial increase in the state's tax revenue for August 2024, with collections reaching MVR 1.98 billion.

This marks an impressive 24% increase, or MVR 1.5 billion more than the same period last year.

According to MIRA’s August revenue report, this notable growth was primarily driven by significant increases in Non-Resident Withholding Tax, Corporate Income Tax, Goods and Services Tax (GST), and Green Tax.

An unexpected boost came from the receipt of Capital Gains Withholding Tax as well as late payments on income tax from corporate entities and non-individuals, which contributed to this favorable outcome.

Another key factor in the revenue spike was the robust tourism sector, with tourist arrivals in July 2024 up by 15% compared to July 2023.

This increase translated into a higher intake of tourism-related taxes, further bolstering the state's revenue.

From January to August 2024, tax revenues accounted for a substantial 86.3% of the total revenue collected, underscoring the pivotal role that taxation plays in the state's finances.

When examining specific tax categories, the total tax collection surged from MVR 1.59 billion last year to MVR 1.98 billion this August, reflecting a growth of approximately 24%.

Income tax revenues, in particular, saw a dramatic rise, climbing from MVR 189 million in August 2023 to MVR 472 million in August 2024, representing a 150% increase.

Similarly, collections from Green Tax rose from MVR 69.5 million to MVR 87.1 million over the same period, while GST revenues, including Tourism GST (TGST), grew from MVR 943 million to MVR 1.05 billion, a notable increase of nearly 12%.

These statistics indicate that the Maldives is benefiting significantly from the growing tourism industry and effective tax collection mechanisms, leading to increased revenue from various sectors that contribute to the state's overall economic health