Revenue collected for second quarter of 2020 sees 75 percent plunge

The total revenue collected for the second quarter of the ongoing year has dropped by 75 percent in comparison to the same period, last year.

According to a publication of the quarterly statistics by Maldives Inland Revenue Authority (MIRA), for the second quarter of 2020, a total of MVR 992.72 million was collected as revenue.

The amount is inclusive of collection through USD.

During the second quarter for 2019, MIRA collected MVR 3.99 billion as revenue, in comparison to which the revenues collected for the same period this year, saw a steep decline by 75.1 percent.

The statistics reveal that the greatest amount of revenue was collected for the second quarter of 2020 through GST, at MVR 483.2 million, which is a major plunge in comparison to the MVR 2,047.3 million collected as GST during the same period of 2019.

According to the authority, the plunge was recorded due to the government shutting down borders as a preventive measure against the ongoing Covid-19 pandemic.

In light of border closing, tax and non-tax deadlines were extended until MIRA reopened for the third quarter of 2020.

MIRA revealed that the plunge was mostly due to the decline in Goods and Services Tax (Tourism Sector), Green Tax, Tourism Land Rent, Airport Service Charge and Airport Development Fee.

The authority went on to stress that tourism-related revenues saw a significant plunge due to the closure of borders which was followed by the tourism industry going to a complete standstill.

Further, in order to facilitate taxpayers in the tourism sector, the Ministry of Tourism had granted an extension of deadline for Tourism Land Rent payment.

Maldives closed its borders for international travel on March 27 and reopened it after almost four months, on July 15.