Chapter 4 | Page 177 fixed tourist-night tax (bed tax) and land lease payments from the resort islands. In 2010, the government introduced major tax reforms with the aim of strengthening the tax base. As part of the tax reform agenda, a goods and services tax (GST) and tourism goods and services tax (TGST) were introduced. The TGST introduced in January 2011 is applied only to tourismrelated consumption of goods and services, while the GST, which came into effect in October 2011, covered all non-tourism goods and services consumed within the country. A broad Business Profit Tax (BPT) was also introduced in July 2011.174 Despite these initiatives, as of 2015, personal income tax and corporate profit tax were yet to be introduced,175 which could have provided important additional government revenue channels. The former government’s efforts to introduce these taxes were mainly derailed by elite capture, as the result of objections from the political and economic elites. Before the introduction of TGST/GST and business profit tax in 2010-2011, the government relied heavily on import duties for much of its tax revenue. The lowering (or elimination) of import duties on a number of items has resulted in an overall decline in import duty receipts. Deficit financing has become increasingly problematic in the face of limited financing options.176 The overall composition of revenue from various sources for 2011-2013 is shown in Table 2 below. 174 The information about taxation regime is derived from Maldives Inland Revenue Authority, Maldives Inland Revenue Authority MIRA (2015) <https://www.mira.gov.mv/ Default_Eng.aspx>. 175 A draft regulation on green tax, mainly targeted to the tourism sector is currently under review. 176 Maldives Monetary Authority, Annual Report 2013 (MMA, Male', 2014).