On 5 December 2019, the Parliament voted on and passed the Budget for 2020, which was presented to the Parliament on 4 November 2019. The Parliament added MVR 366.82 million to the Budget proposed by the Government (MVR 37.50 billion), increasing the approved Budget to MVR 37.87 billion.
Total revenue forecasted for the year amounts to MVR 29.92 billion, out of which MVR 2.59 billion is estimated to be raised from the following additional revenue measures:
- Introduction of Personal Income Tax: 705.9 million
- Change in import duty and Customs fees: 558.2 million
- Introduction of a “quota fee”: 500 million
- Acquisition cost of islands leased for resort development: 290 million
- Change in the rate of work permit: 213.6 million
- Change in the rate of Airport Development Fee: 159.6 million
- Change in the rate of Airport Service Charge: 159.6 million
The deficit of MVR 6.04 billion is expected to be financed primarily through foreign loans, sukuks and bonds, and domestic treasury bills and bonds.
