GST collection 0.3% lower than last year
9 ނޮވެމްބަރު 2019 | ހޮނިހިރު 13:00The budget predicts an annual state income of 4،668.7 million rufiyaa which is a 0.3% reduction from 2018
Minister of Finance, Hon. Ibrahim Ameer
Goods and Services Tax (GST) collection has fallen by 0.3% from 2018 to 2019.
According to the proposal for the state budget 2020 compiled by the Ministry of Finance, the fall in state revenue in comparison to 2018 is attributed to the fall in GST collection.
The budget predicts an annual state income of 4،668.7 million rufiyaa which is a 0.3% reduction from 2018 and a 4.6% reduction of the initially expected state revenue.
Among the taxes charged on the value of goods and services includes the Tourism Goods and Services Tax (TGST) for the tourism sector and the General Goods and Services Tax (GGST) charged for other sectors.
Currently, the expected GGST collection for 2019 is 2،821.3 million rufiya which is a 2.9% fall from 2018 and a 5.9% reduction of the previous prediction.
The numbers are connected to the lack of growth in the construction sector in 2019 and the consequent decrease in sales as well as the fall in revenue gained from audits and enforced collections.
On the other hand, the expected TGST collection for 2019 is 4،847.5 million rufiya is a 1.3% increase in revenue due to the rise in the length of stay by tourists. Nevertheless, the amount is 3.8% less than the initially predicted revenue.
The budget further states that despite the increasing length of stay by tourists, the fall in state revenue is due to the falling prices of services in the tourism industry and tax compliance issues alongside the aforementioned decrease in revenue from audits and enforced collections.
