Revenue collection has been dynamic and is on Figure 9: Breakdown of Total Revenues, 2013 track to meeting the 2013 budget target. Total (%, first 7 months) revenue and grants increased by 17.1 percent by mid- 2013 against the full year growth target of 28.4 percent. Tax revenues increased 32.6 Source: MIRA, World Bank calculations percent (y-o-y) during the first six months of 2013 on the back of higher Business Profit Tax (BPT) and Tourism Goods and Services Tax (TGST) collection. BPT collection exceeded expectations to record MVR 929 million in the first semester of the year, an impressive 82.5 percent (y-o-y) growth. This tax was introduced in 2012 and with companies filing their audited accounts from 2013 onwards, the revenue authority will be able to glimpse corporate earnings in Maldives. Furthermore, TGST collection increased by 54 percent over the same period, driven by the increase from 6 percent to 8 percent from January 2013 and increased tourist arrivals. Non-tax revenue collection was well below the expected levels due to lower transfers from state-owned enterprises (SOEs), which used to issue dividends but now are requiring transfers to cover operational losses. (Figure 9) Table I: Maldives Government Finances
Figure 9: Breakdown of Total Revenues, 2013 (%, first 7 months) Source: MIRA, World Bank calculations Revenue collection has been dynamic and is on track to meeting the 2013 budget target. Total revenue and grants increased by 17.1 percent by mid- 2013 against the full year growth target of 28.4 percent. Tax revenues increased 32.6 percent (y-o-y) during the first six months of 2013 on the back of higher Business Profit Tax (BPT) and Tourism Goods and Services Tax (TGST) collection. BPT collection exceeded expectations to record MVR 929 million in the first semester of the year, an impressive 82.5 percent (y-o-y) growth. This tax was introduced in 2012 and with companies filing their audited accounts from 2013 onwards, the revenue authority will be able to glimpse corporate earnings in Maldives. Furthermore, TGST collection increased by 54 percent over the same period, driven by the increase from 6 percent to 8 percent from January 2013 and increased tourist arrivals. Non-tax revenue collection was well below the expected levels due to lower transfers from state-owned enterprises (SOEs), which used to issue dividends but now are requiring transfers to cover operational losses. (Figure 9) Table I: Maldives Government Finances