Business Governance

Cash flow out of country declines with remittance tax

Western Union Maldives

Western Union Male’ office. PHOTO/NISHAN ALI/MIHAARU

Cash flow out of the Maldives declined by 39 percent in 2017 with the implication of Remittance Tax, according to the annual report of Maldives Monetary Authority (MMA).

The report revealed that only USD 66.8 million was transferred out of the country via money transfer companies.

Compared to 2016, the cash flow has declined dramatically throughout 2017. In February, June and September, the number had decreased by over 45 percent.

Expatriates’ remittance in 2017 was 71 percent, while in 2016 it was 83 percent.

MMA’s report stated that money transfers by expatriates started to decrease with the implementation of Remittance Tax in October 1, 2016.

According to the report, although expatriates’ remittance decreased, the rates by locals remained constant and increased by the end of the year.

While 46 percent of the cash flow out of the country is to Bangladesh, in 2017 it decreased by 56 percent. After Bangladesh, the highest cash flow out of the Maldives is to India.

MMA noted that according to their statistics, USD 4.7 million was transferred into the Maldives in 2017. This was a one percent increase compared to 2016.

Full details are available at the link below:

Source URL: Mihaaru-News

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