Additional revenue unrealised as new measures delayed
The budget approved by the parliament for this year includes the implementation of four new revenue measures.
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By
Ahmed Naaif
A large portion of the MVR 727 million expected to be generated from new revenue sources will not be realised this year, government officials have confirmed.
The budget approved by the parliament for this year includes the implementation of four new revenue measures:
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Real estate tourism - MVR 231.3 million from leasing four lagoons
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MVR 148 million by leasing 12 new islands for resort development
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MVR 300 million from the sale of reclaimed land
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MVR 47.7 million through plastic bag tax
An official from the finance ministry told Atoll Times that the only new revenue measure implemented was the leasing of islands for resort development. MVR 153.1 million was collected as acquisition cost by leasing the islands, he aded.
The official said the remaining actions were not implemented due to various reasons.
"We don't think we can implement the rest this year," the official said.
Bag tax delayed for 2023
The government has submitted an amendment to the parliament to levy taxes on customers from all plastic bags provided by shops. However, the amendment remains at the committee stage.
The budget includes a tax of MVR 2 per bag regardless of its size from June, generating MVR 47.7 million as additional revenue this year. However, the tax is yet to be introduced.
The official said that the bag tax bill will be passed and implemented next year.
Draft regulations for sale of reclaimed land
This year's budget includes generating revenue by selling 30% of the reclaimed land in the islands. It was previously included in 2021, but it had not happened at that time. At the time, the biggest problem was the difficulty in determining the owner of the land.
However, this year's budget states that with the amendments to the Decentralisation Act, it will be easier to determine the owners of the land and that the land will be sold to the public from the reclaimed land this year.
Planning ministry has now drafted the necessary amendments to the regulation stipulating the sale of land, said the finance ministry official.
Lack of investor interest in real estate tourism
The government planned to implement real estate tourism by reclaiming and leasing four lagoons through the state-owned Maldives Fund Management Corporation (MFMC).
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MFMC was expected to pay dividend to the government from leasing properties for real estate tourism
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The budget had a forecast of MVR 231.3 million as MFMC dividend to the government this year
However, the finance ministry confirmed that the project had not been carried out as planned. The official said more investment is needed to carry out the project.
"It will take time," the official said.
The proposed budget for 2023 is scheduled to be submitted on October 31. The next budget is expected to be MVR 4 billion more than this year's budget of MVR 36.9 billion.
