Strong performance in tourism-related revenues has lifted national tax collections in the Maldives to MVR 15.35 billion by 10 July 2025, underlining the government’s successful efforts to build a resilient and diversified fiscal base. This figure marks an increase of MVR 820 million compared to the same period in 2024, when total tax revenue stood at MVR 14.53 billion.
As of mid-July 2025, tax revenue accounted for 76 percent of the government’s total revenue and grants, which collectively reached MVR 20.1 billion. The Maldives Inland Revenue Authority (MIRA) reported that this positive outcome reflects robust economic activity in key sectors, with tourism taxes playing a central role in driving growth. The largest contributions were recorded from the Goods and Services Tax (GST), Import Duties, and Business and Property Taxes, supported by surging receipts from Green Tax and Airport-related levies.
GST collections rose to MVR 8.77 billion, up from MVR 7.97 billion in the corresponding period last year. Notably, Tourism GST contributed MVR 6.16 billion, an increase of MVR 680 million from 2024, highlighting the steady performance of the country’s flagship tourism sector. General GST collections also edged up to MVR 2.61 billion, reflecting consistent domestic consumption and services activity.
Business and Property Tax receipts amounted to MVR 2.80 billion, slightly down from MVR 3.58 billion in the previous year. Within this category, Corporate Income Tax contributed MVR 1.61 billion, Withholding Tax remained stable at MVR 636.3 million, and Individual Income Tax grew to MVR 260.3 million from MVR 221.3 million, a 17.6 percent increase that signals improved payroll compliance and a broadening tax base among individuals.
Import Duties, traditionally a reliable revenue stream, collected MVR 1.53 billion. This is a slight decline compared to MVR 1.71 billion collected last year and may suggest a slowdown in non-essential imports or an expansion of import exemptions for critical goods, in line with government policies to stabilize the cost of living.
Environmental levies also posted impressive growth. Green Tax collections surged to MVR 1.14 billion, nearly doubling from MVR 578.6 million recorded during the same period in 2024. This growth aligns with the administration’s push for sustainable tourism and increased environmental accountability across resorts and guesthouses. Similarly, the Airport Service Charge and Departure Tax jumped to MVR 928.5 million from MVR 601.3 million, a 54.4 percent rise driven by a higher volume of international passenger departures and transit movement through Velana International Airport and regional airports.
Royalties contributed MVR 179.4 million, up from MVR 99.6 million in 2024, likely reflecting updated agreements with tourism developers and resort operators, further enhancing the country’s ability to capture more value from its natural and economic assets.
Despite the positive trend, the government remains focused on strengthening compliance and addressing areas of decline. The fall in Corporate Income Tax and marginal contraction in Import Duties highlight the importance of improving filing efficiency and navigating macroeconomic headwinds from the previous year. Withholding and property tax performance has been stable, though the government sees room for expanded enforcement and tax base widening.
The full-year tax revenue target for 2025 stands at MVR 29.22 billion. With collections already reaching 52.5 percent of the target in just over six months, achieving this projection remains within reach, particularly as the high season for tourism approaches. A successful second half, buoyed by strong visitor numbers and increased tourist expenditure, would further consolidate fiscal gains and support the broader economic recovery.
The sharp rise in Green Tax and Individual Income Tax collections also signals the maturing of the Maldives’ tax architecture, which is gradually reducing its dependency on corporate and import-based revenues. These developments reflect the government’s deliberate fiscal policy direction aimed at fostering economic resilience, enhancing sustainability, and mobilizing domestic resources to finance national development.
Through prudent financial management, strategic partnerships, and a renewed focus on tourism excellence, the Maldives continues to reinforce its position as a stable and attractive destination for global travelers and investors alike. The strengthening revenue base, anchored in sustainable tourism and fiscal innovation, stands as a testament to the country’s ongoing economic transformation.
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