Maldives Tax Collection Surges to Record High of MVR 15 Billion in Eight Months

In a significant fiscal achievement, the Maldives has witnessed an impressive surge in tax revenue collection, with a staggering MVR 15.2 billion collected over the past eight months. This remarkable figure represents a substantial increase of approximately MVR 3.4 billion compared to the previous year, marking an impressive growth rate of about 20 percent.
This surge in tax revenue coincided with a series of strategic adjustments in tax rates, including the increase in the public goods and services tax (GST) to 8 percent and the tourism goods and services tax (TGST) to 16 percent since January. Previously, TGST stood at 12 percent, while GST was at 6 percent.

Year-to-date data reveals that MVR 6 billion has been collected as TGST, accompanied by MVR 2.9 billion in GST, marking a substantial 34 percent increase compared to the previous year.
Out of the total tax revenue collected, an impressive sum of USD 541 million was generated, reflecting the Maldives' strong economic performance. Income tax significantly contributed MVR 4.6 billion to the revenue, further complemented by an additional MVR 119 million from business profit tax.
Additionally, the nation benefited from other revenue streams, with MVR 965 million collected from resort rent, MVR 692 million from airport development fees, and MVR 44 million as lease acquisition income.
This remarkable fiscal performance showcases the Maldives' commitment to maintaining a robust and sustainable economy. The increase in tax revenue not only reflects the effectiveness of the adjusted tax policies but also demonstrates the nation's resilience and capability to navigate economic challenges successfully.
As the Maldives continues to adapt to evolving economic landscapes, this achievement stands as a testament to the government's dedication to fiscal stability and the overall well-being of its citizens.