Chapter 4 | Page 178
Table 2: Government Revenue and Grants, 2010-2014 (Maldives)
(Millions of MVR : US$ 1= MVR 15.40)
Total Revenue and Grants
973.7
633.3
475.9
757.2
Others
3,744.7
2,843.3
2,642.1
3,930.4
Resort lease rent
45.1
132.7
156.0
155.9
Net sales to
public enterprises
229.9
34.9
313.2 1,401.3
355.0 1,881.0
482.4 2,376.4
Total non-tax
337.5
299.9
350.3
436.5
Others
business profit tax
Bank profit tax
GST
Import duty
750.8
665.3 2,586.5
243.0
804.7 1,553.6 1,369.0 1,005.7
861.6 2,154.7 1,575.9 1,538.4
812.3 2,977.9 1,717.0 1,478.0
Airport SC
4,893.0
6,880.1
8,872.8
10,436.3
TGST
TOTAL
9,904.6
10,138.1
11,900.7
14,907.2
Capital
Revenue Grants
Non-Tax Revenue
Tourism tax
Year
2011
2012
2013
2014
Total Tax
Tax Revenue
1,152.2
1,031.2
1,106.3
1,271.1
1,618.8
1,178.8
1,059.9
1,902.1
534.5
48.1
268.1
152.9
732.4
366.7
117.7
414.6
Source: Ministry of Finance and Treasury/ MMA (2015)
As can be seen from Table 2, the largest component of tax revenue in 2014
was the TGST followed by business profit tax and import duties. Of the total
tax revenue, TGST revenue made up 28.5 percent, a significant increase over
previous years that largely reflects the increase in the rate of TGST from 6
percent in 2012 to 8 percent in 2013.177 Revenue from GST also increased,
driven by increased consumption, increased tax rates (from the initial 3.5
percent to 6 percent) and the inclusion of more goods and services in the list
of taxable items. The government has recently added key sectors such as
telecommunications and transport to the GST,178 which will significantly
increase GST revenue in future. The government has already put forward
proposals to increase the TGST rate to 15 percent.
According to the World Bank, non-tax revenue accounted for 26 percent of
total government revenue. This includes rent from resort lease and profit
transfers from State-owned enterprises179 and puts the non-tax revenue in
Maldives among the highest in the South Asia region.180 This over-reliance on
non-tax revenue may be a source of structural vulnerability in the economy
and the revenue base.
177
Ibid., 21.
178
Maldives Inland Revenue Authority, GST (Goods and Services Tax)
<http://www.mira.gov.mv/Gst.aspx>.
179
The World Bank, above n 73, 40-41.
180
Ibid.
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