The Ministry of Finance has recorded a steep decline in green tax revenues collected by the state during August 2020, in comparison to 2019.

According to the green fund report released by the ministry, the state collected approximately MVR 5,293,760.14 as green taxes by the end of August.

Statistics indicate that during the same period last year, the state had collected MVR 72 million as green tax revenues in comparison to which a 92.7 percent plunge was observed this year.

Transactions of the green fund by the end of August were at MVR 169,459,862.58 as outflows and funds totaling MVR 294,698,799.45 were recorded as inflows.

The greatest amount was received as green taxes through tourist establishments such as liveaboard vessels, local guesthouses and hotels in Kaafu atoll, at MVR 1,865,519.18.

The second greatest contributors came from Raa atoll, which contributed MVR 728,643.31 of the green tax revenues, followed by Alif Dhaal atoll which contributed MVR 500,894.21.

By the end of August, MVR 6,272,042.48 had been spent from the green fund for various development projects. The total remaining in the green fund is at MVR 907,820,575.88.

Expenditure from the green fund was mostly for projects such as establishment of sewer systems, coastal protection, land reclamation and revetment, water and sewerage systems as well as water supply networks among several others.

The greatest amount was withdrawn for the Water Supply and Sewerage System in Fuvahmulah City at MVR 3,188,244.77, followed by the Water and Sewerage Network in Gulhi island of Kaafu atoll at MVR 1,322,811.41.

Due to the situation surrounding the global Covid-19 pandemic, the country’s tourism industry came to a complete standstill for over three months. This caused the state revenue to cease during the second quarter of 2020. Due to the virus, green tax revenue had significantly dropped after tourist establishments were shut down and the border closed on March 27.

Since reopening borders on July 15, tourist resorts and liveaboard vessels have been allowed to operate, guesthouses outside of the greater Malé region will resume operations on October 15. Very recently, the government made it mandatory for tourists to provide a negative PCR test for Covid-19, before arriving in the country.