According to the Finance Ministry, the government has received a total revenue of MVR 3.7 billion as of the sixth day of this month, compared to MVR 4.6 billion during the same period last year. This reflects a decline of MVR 874 million.
Both tax and non-tax revenues experienced a decline. Tax collections this year so far stand at MVR 3.3 billion, which is MVR 589 million less than last year, where tax revenue totaled MVR 3.7 billion during the same period.
The largest drop in tax revenue has come from import duties and business profit taxes. Import duties have decreased by 64 percent, with import duty collections amounting to MVR 138 million this year, compared to MVR 384 million last year. This represents a decline of MVR 247 million.
Import duties have dropped so significantly that duties on most Chinese imports have been suspended since January of this year.
In addition to the fall in import duties, business profit taxes have also decreased by 23 percent. Business profit tax collections last year amounted to MVR 1.7 billion, while this year they stand at MVR 1.3 billion.
Furthermore, non-tax revenue has also seen a decline of 42 percent. Revenue from resort rentals, foreign quota fees, and airport development fees has decreased this year.
Overall, both total revenue and expenditure have fallen by 29 percent compared to the same period last year. As of this year, the government has spent MVR 3.2 billion.