Maldives Inland Revenue Authority (MIRA) reported a total revenue collection of MVR 2.18 billion in May 2025, marking a 30.5 percent increase compared to the same month in 2024. The growth was primarily attributed to strong tourism-related tax performance, especially from the Tourism Goods and Services Tax (TGST), Green Tax, and airport-related fees.
Tourism once again proved to be the backbone of the country’s revenue base. The surge in collections was underpinned by a 17.8 percent increase in tourist arrivals in April 2025, which translated into higher bednights and related tax inflows in May. New tax measures also played a role: Green Tax rates were increased starting 1 January 2025, and airport taxes and fees were revised upwards in December 2024.
TGST alone accounted for 62.5 percent of May’s total revenue, followed by Green Tax at 9.4 percent, Airport Development Fee (7.7 percent), and Departure Tax (7.6 percent). Income Tax, including employee and non-resident withholding tax, contributed 6.1 percent, while Work Permit Fees added 2.9 percent.
In USD terms, revenue for the month reached USD 104.7 million. The major contributors to dollar-denominated revenue were also TGST (59.8 percent), Green Tax (12.7 percent), and various airport-related taxes and fees.
MIRA also noted that collections for the month exceeded projections by 7.3 percent. This overperformance was partly due to discretionary payments under the Corporate Social Responsibility (CSR) fee category, which are not included in baseline forecasts. Additionally, 17.3 percent of the revenue collected in May came from recovery of outstanding dues.
Despite the strong showing in May, a deeper look reveals the Maldives’ dependence on tourism-linked revenue remains high. GST from the tourism sector contributed 44.2 percent of the USD share in revenue, compared to just 18.2 percent from the general sector. Other sources, such as business permits, land rent, lease extensions, and fines, each made up only marginal proportions of overall revenue.
Cash refunds and tax offsets were also reported, but these adjustments were relatively minor compared to the overall volume of collections.
The data reinforces that while tourism continues to drive fiscal performance, efforts to diversify the revenue base remain limited. With rising public expenditure and debt obligations, broadening income sources may become increasingly urgent to ensure long-term fiscal stability.
