Green Tax revenues for April 2025 more than doubled compared to the same period last year, according to the latest figures released by the Maldives Inland Revenue Authority (MIRA). The surge follows the January 2025 increase in Green Tax rates and suggests short-term gains for government coffers from environmental levies.
Total Green Tax collection for April 2025 reached MVR 226.7 million, up from MVR 105.8 million in April 2024. The figure includes USD 14.8 million collected in April 2025, compared to USD 6.9 million the year before. As a result, the tax’s share of total monthly revenue rose from 5.0 percent in April 2024 to 8.7 percent in April 2025.
MIRA’s report attributes the growth in collections to a combination of factors: a 4.8 percent year-on-year increase in tourist arrivals in March 2025, the implementation of higher Green Tax rates at the start of the year, and increased airport charges introduced in late 2024. All of these have contributed to higher per-visitor revenue in the first quarter of the year.
Year-to-date figures paint a similar picture. By the end of April, the state had collected MVR 754.6 million in Green Tax, compared to MVR 422 million over the same period in 2024. The tax now accounts for 6.3 percent of cumulative revenue collected so far in 2025, up from 3.8 percent last year.
While these figures may be encouraging for policymakers seeking additional revenue without directly taxing incomes or domestic consumption, questions remain about the sustainability of such growth. The tax is closely tied to tourism performance, which is inherently volatile and sensitive to external shocks. Moreover, there are limits to how often or how steeply such a tax can be raised without impacting the industry it draws from.
Green Tax was introduced as an environmental levy to address the ecological footprint of the tourism sector, particularly from resort operations. Whether the increase in revenue is translating into meaningful environmental outcomes, however, is not yet clear.
If current trends continue, the Green Tax could become one of the state’s more significant revenue sources in foreign currency. But whether its growth is sustainable or indicative of a one-off surge tied to rate changes and peak travel remains to be seen.
