The state revenue during the month of February was below estimated figures according to the latest statistics by Maldives Inland Revenue Authority (MIRA).

The monthly revenue collection report by MIRA revealed that MVR 1.72 billion was collected as state revenue in February, inclusive of USD 73.60 million. However, this marked a decrease of 20.8 percent compared to the estimated collection for February.

MIRA noted that the decrease in revenue was due to the decline in GST collection. Mira noted that under the GST Act, the time of supply in relation to goods or services supplied shall be deemed as the time at which a tax invoice is issued or at the time at which the full or partial payment for such goods or services was made, whichever comes earlier.

"As the tax rate was effective from 1st January 2023, taxpayers could raise the tax invoice prior to this date in advance. Thus, the GST for the month of February 2023 (after the tax rate change) is lower than forecasted revenue and the GST collected in January 2023 (GST collection prior to the rate change) is higher than the forecasted revenue. Nonetheless, the cumulative GST collection to date is still higher than the forecasted GST revenue to date," the report added.

MIRA also highlighted that the MVR 1.72 billion in February is a 18.6 percent increase compared to February 2022.

GST remained the top revenue contributor for February as well. As such GST contributed MVR 1.1 billion and income tax contributed MVR 182 million.