The Maldives government has unveiled its proposed budget for 2027, projecting total revenue and grants of USD 2.80 billion, supported by stronger tourism receipts, new resort openings and planned reforms to the country’s tax framework. Tax revenue is expected to account for USD 2.18 billion of the total, highlighting the continued importance of both tourism and broader economic activity to the government’s fiscal outlook.
A major contributor to the projected revenue growth is a series of legislative amendments submitted to Parliament in mid-October 2026. The proposed changes include amendments to the Income Tax Act, Goods and Services Tax Act and Tax Administration Act, aimed at strengthening revenue collection while improving the efficiency of the taxation system.
According to estimates by the Maldives Inland Revenue Authority, amendments to the Income Tax Act are expected to generate an additional USD 32.12 million from 1 January 2027. Total income tax revenue, including Business Profit Tax, Bank Profit Tax and Non-Resident Withholding Tax, is forecast to reach USD 434.95 million, representing a 4.8 percent increase compared with the 2026 estimate.
The tourism industry is expected to remain one of the strongest pillars supporting government revenue in 2027. Continued growth in international arrivals, stronger performance across the hospitality sector and anticipated openings of new resorts are expected to increase tourism-related collections. Tourism Goods and Services Tax revenue is projected at USD 786.65 million, making it one of the largest individual sources of state income.
Revenue from resort land rent is forecast to rise to USD 153.64 million as the Maldives continues to expand its tourism portfolio and bring additional resort developments into operation. The opening of new properties across the atolls is expected to increase accommodation capacity, create employment opportunities and broaden the country’s appeal across luxury, lifestyle and premium travel markets. Continued investment in resorts and tourism infrastructure is also expected to strengthen economic activity beyond the capital and support local communities through employment, supply chains and related services.
Airport taxes and fees are meanwhile projected to increase by 7.3 percent to USD 285.56 million, reflecting expectations of continued growth in passenger movements and international connectivity. The outlook comes as the government continues to prioritise tourism infrastructure, aviation capacity and investment opportunities designed to support the long-term expansion of the Maldives as a globally competitive destination.
General Goods and Services Tax revenue is also forecast to grow by 7.3 percent to USD 405.02 million, supported by higher domestic price levels and economic activity. At the same time, the government is introducing measures aimed at supporting smaller businesses by increasing the mandatory GST registration threshold from USD 64,850 to USD 97,276 from 1 January 2027.
The higher threshold is expected to reduce administrative obligations for smaller enterprises and lower barriers for emerging businesses, while the broader fiscal reforms seek to strengthen government revenue and support sustainable economic growth. With tourism continuing to generate substantial fiscal income and new resort developments contributing additional capacity, the 2027 budget outlook reflects the government’s focus on strengthening public finances while maintaining momentum across the Maldives’ key economic sectors.
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