The Maldives recorded MVR 15.35 billion in tax revenue by 10 July 2025, showing continued recovery and strength in key revenue streams despite uneven performance across tax categories. This represents a notable increase from the MVR 14.53 billion collected over the same period in 2024.
Tax revenues now account for 76 percent of the government’s total revenue and grants, which stood at MVR 20.1 billion by the second week of July. The largest contributors this year have been Goods and Services Tax (GST), Import Duties, and Business and Property Tax, with tourism-related taxes performing particularly well.
GST collections reached MVR 8.77 billion, up from MVR 7.97 billion during the same period last year. Of this, Tourism GST contributed MVR 6.16 billion, compared to MVR 5.48 billion last year, reflecting the strong revenue base from high-end resorts and related services. General GST grew slightly to MVR 2.61 billion.
Import Duties, traditionally a steady source of income, brought in MVR 1.53 billion, a marginal drop from MVR 1.71 billion last year. This may indicate either a slowdown in imports or greater exemptions for essential goods.
Business and Property Taxes amounted to MVR 2.80 billion, down from MVR 3.58 billion in the previous year. Within this category, Corporate Income Tax contributed MVR 1.61 billion, and Withholding Tax held steady at MVR 636.3 million. Interestingly, Individual Income Tax rose to MVR 260.3 million, up from MVR 221.3 million, suggesting either a growing tax base or improved compliance among salaried earners.
Other notable contributors include the Green Tax, which surged to MVR 1.14 billion from MVR 578.6 million in 2024, almost doubling year-on-year. The Airport Service Charge and Departure Tax also rose to MVR 928.5 million from MVR 601.3 million last year, likely due to the increase in outbound and transit passenger movements.
Royalties brought in MVR 179.4 million, nearly doubling from MVR 99.6 million last year, which could be linked to new or renegotiated agreements with resort operators and developers.
While GST and tourism-linked taxes are surging, the decline in business-related taxes and import duties warrants attention. The drop in Corporate Income Tax may reflect delayed filings or the aftereffects of 2024’s macroeconomic environment. Meanwhile, subdued growth in withholding and property taxes suggests potential in widening compliance and enforcement.
The government has projected MVR 29.22 billion in tax revenues for the full year 2025. With just over half the year complete, current collections represent 52.5 percent of this target, indicating that meeting the year-end goal is plausible, especially if the upcoming high season boosts tourist arrivals and spending.
The increase in individual income tax and green tax collections points to growing fiscal capacity in newer areas of the tax system. If these trends continue, they could help cushion the budget against the volatility of corporate and trade taxes.
