Estimated revenue from resorts unrealised!

Maldives Inland Revenue Authority (MIRA) has said that projected revenue has fallen by 37.9 per cent mainly due to the unrealised revenue from extension of resort lease period to fifty years.

In the monthly revenue collection report, MIRA had estimated a revenue of Rf 375 million to the government from the extension of resort lease period; however, only Rf 23 million was received in March 2012.

Earlier, the resorts had to pay lease period extension fees lump sum to the government. However following Civil Court ruling that this money cannot be charged in this manner, Tourism Ministry has decided to impose an annual charge. The Ministry has even agreed to deduct the advance payments made by resorts from their monthly lease payments.

MIRA’s statement for February 2012 shows that Rf 145.8 million was received in February by extending the resort lease period.

The IMF team currently visiting Maldives has also highlighted this issue. The government and IMF agree that the budget will be short of about Rf 2 billion, as part of the estimated revenue will not be realised.