April marked a strong month for government revenue in the Maldives, as figures released by the Maldives Inland Revenue Authority (MIRA) show a notable rise in collections largely driven by tourism-related taxes. The authority collected USD 168.55 million in April 2025, reflecting a 22.7% increase compared to the same period last year. This figure also surpassed MIRA’s forecast for the month by 1.6%, with dollar-denominated revenue accounting for USD 125.09 million of the total.
A closer look at the revenue breakdown reveals that Goods and Services Tax (GST) remained the leading contributor, bringing in USD 107 million, or 63.4% of total collections. Green Tax revenue followed at USD 14.7 million, contributing 8.7%, while Income Tax brought in USD 11.45 million, or 6.8%. Other notable contributors include the Airport Development Fee (USD 10.07 million), Department Tax (USD 9.94 million), and Tourism Land Rent (USD 0.61 million).
MIRA attributed this strong performance to several tourism-related factors. A 4.8% increase in tourist arrivals in March 2025 compared to the same month in 2024 significantly bolstered GST and Green Tax collections. Additionally, the revised Green Tax rate implemented from January 1, 2025, and the uptick in airport tax revenue from December 2024 further supported the boost. MIRA also reported that 14.8% of the revenue collected in January 2025 was payments for obligations from previous periods.
Complementing MIRA’s data, the Ministry of Finance’s latest Weekly Fiscal Development Report provided further insights into the government’s financial standing. As of May 1, 2025, revenue from the Green Tax had surged by 73.7% compared to the previous year, while Departure Tax revenue rose by 31.9%, and Tourism GST saw a moderate increase of 5.3%.
Non-tax revenues also saw considerable growth, increasing by 32.3% year-on-year. Within this category, 20.1% of the revenue was attributed to resort land rentals, an indicator of the continued strength of the hospitality sector and its long-term leasing arrangements.
On the expenditure front, the government reported improved fiscal discipline. Operational expenses were reduced by 8.6%, while transport-related costs saw a sharper decline of 21.8%. This led to an overall 3.3% decrease in recurrent expenditure. As of May 1, the government had utilized 24.3% of the total expenditure allocated in the 2025 national budget.
The latest figures also indicate a favorable fiscal balance, with total revenue reaching MVR 13.5 billion and expenditure recorded at MVR 12 billion. These trends suggest that tourism continues to serve as a resilient pillar for the Maldivian economy, playing a central role not only in foreign currency inflows but also in shaping the broader fiscal landscape.
As international interest in the Maldives remains high, sustained performance in tourism-related tax collection is expected to contribute positively to the nation’s economic stability and development.
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