The Maldives government has reported a substantial 22.7 percent revenue increase in April 2025, with total collections reaching MVR 2.60 billion, powered by robust tourism sector performance and strategic tax policy adjustments. The breakthrough comes as the nation leverages its tourism strengths to bolster national finances during ongoing economic recovery efforts.
According to the Maldives Inland Revenue Authority (MIRA), USD collections hit $125.09 million, reflecting a significant boost from policy changes implemented in late 2024. The revenue surge stems directly from a 4.8 percent increase in tourist arrivals in March 2025 and strategic modifications to green tax rates and airport-related fees.
Breaking down the revenue composition, Goods and Services Tax (GST) emerged as the primary contributor, representing 63.4 percent of total collections. Tourism-related taxes continued to play a pivotal role, with Tourism GST comprising 60.2 percent of USD collections and highlighting the sector’s critical importance to the national economy.
The April 2025 financial report revealed particularly impressive performance metrics, with collections exceeding initial projections by 1.6 percent. A notable achievement was the recovery of 21.9 percent of total revenue from outstanding dues, demonstrating enhanced enforcement mechanisms and improved tax collection strategies.
Comprehensive revenue data showed total tax revenue reaching MVR 2.21 billion, complemented by non-tax revenues of MVR 393.98 million. The cumulative collections for the January–April period totaled MVR 11.92 billion, representing an substantial increase of nearly MVR 900 million compared to the same period in the previous year.
While the revenue growth signals positive economic momentum, MIRA acknowledges the continuing heavy dependence on tourism-generated income. The report subtly hints at the potential need for economic diversification to ensure long-term fiscal sustainability beyond the tourism sector.
Key revenue streams included Green Tax at 8.7 percent, alongside substantial contributions from Income Tax, Airport Development Fees, Departure Tax, and Tourism Land Rent. Despite the overall positive performance, certain revenue sources like Bank Income Tax and administrative fines remained relatively marginal.
The financial results underscore the Maldives’ strategic approach to revenue generation, balancing immediate fiscal needs with broader economic development objectives. As the nation continues to navigate post-pandemic economic recovery, these revenue figures represent a promising indicator of resilience and adaptive financial management.
