As the COVID-19 pandemic affected three quarters of 2020, the tax collection in the Maldives saw a decline of around 37 percent in the year. The total tax collected by the Maldives Inland Revenue Authority (MIRA) remained around $ 664 million (~ MVR 10.4 billion).

Earlier in 2019, the MIRA reported a $1.08 billion in revenue, meaning a decline of 37 percent in the following year.  The country’s dollar revenue also dropped by 54 percent to just $19.8 million in 2020. In 2019, the MIRA collected $42.22 million as direct dollar income.

Tourism, the main driver of the Maldives’ economy, remained the worst affected due to the global pandemic. The country’s tourist arrival saw a decline of around 70 percent compared to 2019. The reduced footfall resulted in the direct loss of dollar income for the MIRA.

Contrary to previous years where Tourism Goods and Services Tax (TGST) used to be the biggest revenue source, MIRA got most of it, around $274, from Goods and Service Tax ( GST) in 2020. However, the tax from GST too registered a fall of around 44 percent in comparison to 2019.