The Maldives Inland Revenue Authority (MIRA) has achieved a remarkable milestone in digital tax collection, with an unprecedented 98.9 percent of its total revenue processed through online platforms in 2024. The authority’s latest annual report reveals a groundbreaking shift towards digital financial management, collecting MVR 22.77 billion through advanced digital payment systems.
Exceeding financial projections, the tax revenue demonstrated robust growth, surpassing initial estimates by 9.7 percent. Compared to the previous year, overall revenue experienced a substantial 10.5 percent increase, reflecting the nation’s evolving economic landscape and strategic fiscal policies.
The tourism sector emerged as a critical driver of this financial success. A strategic increase in the Tourism Goods and Services Tax (TGST) to 16 percent coincided with an impressive 8.76 percent surge in tourist arrivals. This dual momentum significantly bolstered the country’s tax collection capabilities and economic resilience.
Additional highlights from the report include a consistent five percent year-on-year growth in Goods and Services Tax (GST) revenue. Non-tax revenue sources also outperformed expectations, exceeding projected figures by a remarkable 38.5 percent.
The data underscores the Maldives’ successful digital transformation in financial administration. By leveraging cutting-edge digital payment technologies, MIRA has not only streamlined tax collection but also enhanced transparency and efficiency in government financial operations.
Experts attribute this digital revolution to several key factors, including improved technological infrastructure, increased digital literacy, and strategic government initiatives promoting online financial services. The near-total digital collection rate represents a significant leap forward in the country’s financial ecosystem.
The tourism sector continues to play a pivotal role in this economic narrative. With continued growth in international visitor numbers, the Maldives demonstrates remarkable resilience and adaptability in its approach to revenue generation and economic development.
As digital platforms become increasingly central to financial transactions, MIRA’s achievement signals a transformative moment for the Maldives’ economic strategy. The authority’s successful implementation of digital tax collection methods positions the nation as a progressive leader in financial technology and government innovation.
