Budget 2027: Tax revenue projected at 33.6 billion rufiyaa

The proposed state budget for next year projects a rise in tax revenue, driven by amendments to tax laws. Income and grants for 2027 are estimated at 43.2 billion rufiyaa, with tax revenue expected to reach 33.6 billion rufiyaa. The amendments to the Income Tax Act and the Value Added Tax Act were submitted to the People's Majlis on 18 October 2026, followed by a bill amending the Administrative Tax Act on 19 October 2026. MIRA estimates that the Income Tax Act amendments will generate an additional 495.3 million rufiyaa, with implementation starting on 1 January 2027. Airport taxes and fees are projected to yield 4,403.4 million rufiyaa next year, a 7.3% increase from the current estimate. The budget also forecasts a rise in resort land rents to 2,369.1 million rufiyaa, and income tax revenue is expected to grow by 4.8% to 6,707 million rufiyaa. VAT revenue is projected to increase by 7.3% to 6,245.4 million rufiyaa, partly due to rising prices. The government has decided to raise the annual sales threshold for mandatory VAT registration from 1 million rufiyaa to 1.5 million rufiyaa, effective 1 January 2027.