Revenue Collection Climbs 6.9% in August, Driven by Tourism Growth

The Maldives Inland Revenue Authority (MIRA) has announced that state revenue for August 2025 reached MVR 2.12 billion, marking a 6.9 percent increase compared to the same period last year. Collections also exceeded projections by 3.1 percent, reflecting both stronger tourism performance and enhanced tax recovery efforts.

A substantial portion of the month’s revenue was denominated in U.S. dollars, with MIRA reporting USD 89 million in foreign currency receipts. Goods and Services Tax (GST) remained the single largest contributor, generating more than half of the total collections, while Income Tax ranked second. Additional inflows came from the Green Tax, Airport Development Fee, Departure Tax, and Work Permit Fees.

Officials attributed the higher revenue primarily to robust tourism activity. Tourist arrivals in August grew by 11.5 percent year-on-year, driving up receipts from Tourism GST (TGST), Green Tax, and airport-related charges. The increase in Green Tax rates implemented in January 2025, along with higher airport levies introduced in December 2024, further boosted revenue.

Beyond regular taxation, revenue was strengthened by one-off payments under the Corporate Social Responsibility Fee. MIRA also reported progress in tax enforcement, with 22.9 percent of August’s collections coming from overdue payments, while targeted recovery actions accounted for an additional 9 percent.

While the figures highlight tourism’s continued dominance in state revenue, they also reveal challenges in compliance, as a significant share of funds stemmed from arrears. Nevertheless, the stronger-than-expected performance provides some fiscal relief at a time when the government faces mounting debt and high expenditure commitments.