State earns MVR 6.8 mn in remittance tax in first month

State has earned an income of MVR 6.8 million in remittance tax during the first month of its introduction.

State started taking a remittance tax of three percent from foreign workers on October 1. The tax needs to be collected by banks and other financial institutions which facilitate the money transfers abroad for foreign workers, and paid to Maldives Inland Revenue Authority (MIRA) before the 15th of each month.

MIRA reports it received MVR 6,822,074 in remittance tax for the month of October by November 15; which makes for 0.1 percent of the MVR 1,008,455,214 income it received in November.

Starting from January 1, 2017, remittance tax will be taken from transfers made abroad from the bank accounts of foreign workers which are required to be opened in a registered bank operating in Maldives.

MIRA received approximately MVR 526 million in GST in November – which is more than half of the total income earned by MIRA during the month.

MIRA also received more than MVR 87 million in acquisition fees for islands, more than MVR 76 million in lease extensions for islands, and MVR 43,714,983 in airport service charge.

The central bank earned a total of MVR 13.2 billion from January to November, 2016.