Government revenue increased modestly during the second quarter of 2026 despite a broad decline in tourism-linked collections, with stronger income tax and domestic consumption revenue compensating for weaker foreign currency receipts.
The Maldives Inland Revenue Authority collected MVR 7.60 billion during the quarter, representing an increase of 1.9 per cent from MVR 7.46 billion in the corresponding period of 2025.
MIRA’s detailed figures show collections were 13.5 per cent above the MVR 6.70 billion projected for the quarter. Tax revenue reached MVR 6.05 billion, while non-tax revenue amounted to MVR 1.55 billion.
The overall increase concealed a marked difference between tourism-related revenue and collections generated elsewhere in the economy.
Tourism Goods and Services Tax remained the largest individual revenue source at MVR 2.49 billion, accounting for 32.7 per cent of total collections. However, TGST revenue fell by 8.3 per cent compared with the second quarter of 2025.
MIRA attributed the decline to a 16 per cent reduction in tourist arrivals during the relevant taxable period amid the Middle East crisis. Tourism-sector sales reported for the quarter, including output tax, declined by 7.4 per cent to USD 1.55 billion, with resort sales falling by 9.1 per cent.
Green Tax revenue dropped by 19.2 per cent to MVR 480.58 million as taxable bed nights declined by 14.4 per cent. Departure Tax fell by six per cent to MVR 444.36 million, while Airport Development Fee collections decreased by 5.8 per cent to MVR 448.87 million.
These declines contributed to a 6.1 per cent reduction in revenue collected in US dollars. MIRA received USD 328.23 million during the quarter, compared with USD 349.53 million a year earlier. Nevertheless, revenue received in US dollars accounted for 66.4 per cent of total collections when converted into rufiyaa.
Stronger domestic revenue helped offset the tourism downturn. General Goods and Services Tax increased by 12.8 per cent to MVR 1.42 billion, supported by growth in reported sales and the collection of outstanding dues.
Wholesale and retail trade remained the largest contributor to general sector GST, generating MVR 692.60 million. GST reported by accommodation and food service businesses increased by 12.7 per cent, while collections from information and communication activities rose by 10.8 per cent.
Income tax recorded the strongest growth among the major revenue categories, rising by 28.2 per cent to MVR 1.21 billion. Bank Income Tax more than doubled to MVR 285.71 million, while Corporate Income Tax increased by 36 per cent to MVR 520.07 million.
Non-resident withholding tax, however, declined by 6.6 per cent to MVR 285.21 million.
Among non-tax revenues, Tourism Land Rent rose by 5.8 per cent to MVR 546.83 million, while Work Permit Fee collections increased by 19.5 per cent to MVR 214.82 million. MIRA also received MVR 63.40 million in lease period extension fees during the quarter.
Revenue collected during the first six months of 2026 reached MVR 19.31 billion, which was 12.7 per cent above the MVR 17.13 billion projected for the period.
The report also showed total outstanding principal owed by taxpayers reached MVR 14.50 billion at the end of June. This included MVR 5.97 billion in Tourism Land Rent, MVR 3.60 billion in general sector GST and MVR 1.56 billion in tourism sector GST. State-owned enterprises accounted for MVR 3.82 billion of the outstanding amount.
The quarterly figures indicate that domestic taxes and income tax protected overall revenue growth during the tourism slowdown. However, the contraction in tourism receipts and US dollar collections remains significant given the sector’s contribution to both government income and the country’s foreign currency inflows.
