Revenues from the Maldives’ Green Tax and Departure Tax have risen significantly in the first four and a half months of 2025, according to the latest fiscal data from the Ministry of Finance and Planning. While tourist arrivals remain steady, the surge in earnings is largely due to tax rate changes implemented in recent years.
As of 15 May 2025, Green Tax collections reached MVR 770.3 million, compared to MVR 435.8 million during the same period in 2024. Departure Tax revenue also climbed, totalling MVR 614.4 million, up from MVR 426.8 million the previous year. Together, these taxes have generated over MVR 1.3 billion, making them a growing source of government income.
Although Tourism Goods and Services Tax continues to be the dominant contributor to state finances, the increased contribution from Green and Departure Taxes signals a shift in revenue structure. The rise is not solely the result of visitor growth, but rather a reflection of the upward revision of tax rates.
At the same time, grant inflows have declined markedly. So far in 2025, the government has received only MVR 93.9 million in grants, less than half the amount collected during the same period last year. This makes the performance of self-generated revenues even more critical in maintaining fiscal stability.
The use of Green Tax funds remains a subject of public interest, with past concerns about whether the revenue is being spent on environmental protection and resilience, as originally intended. With nearly MVR 800 million collected so far this year, calls for greater accountability in how these funds are used are likely to intensify.
