Revenue collected from the Tourism Goods and Services Tax (TGST) exceeded projections by 16.9 percent during the second quarter of this year, according to statistics released by the Maldives Inland Revenue Authority (MIRA).

MIRA collected MVR 2.49 billion in TGST during the quarter, surpassing the amount initially forecast for the period.

The authority attributed the stronger than expected collection mainly to an increase in the number of taxpayers filing and paying the tax

Despite exceeding the quarterly projection, TGST revenue was 8 percent lower than the amount collected during the corresponding period last year.

MIRA collected MVR 6.05 billion in total tax revenue during the quarter, including revenue received in US Dollars.

The figure represents a 1 percent increase compared with the same period last year.

The government raised the TGST rate from 16 percent to 17 percent effective July 1 last year.

The higher rate applies to taxable tourism-related goods and services in the Maldives.

The government has also scheduled increases to the Airport Development Fee and Departure Tax following amendments to the Airport Taxes and Fees Act.

The changes are set to take effect on December 1, 2024.

The latest figures indicate that improved taxpayer compliance helped MIRA outperform its quarterly TGST forecast, although collections remained below the level recorded during the same period last year.