Government revenue generated from taxes paid by commercial banks rose sharply during the first six months of 2026, with collections increasing by 160 percent compared with the same period last year.
According to the latest government revenue figures, the state collected MVR 776 million in bank income tax during the first half of the year, up from MVR 294 million recorded during the corresponding period in 2025.
The increase means bank income tax accounted for 27 percent of all income tax revenue collected by the government over the six-month period.
Overall, the state received MVR 3.6 billion in income tax during the first half of 2026, representing a 33 percent increase compared with the same period last year.
The figures also show that tax revenue continued to be the government’s primary source of income. Of the approximately MVR 19 billion collected by the state during the first six months of the year, around MVR 15 billion came from taxes.
The current tax framework for banks was introduced following the implementation of the Income Tax Act in April 2020, which replaced the previous legislation governing the taxation of profits earned by commercial banks operating in the Maldives.
Under the law, banks are required to pay 25 percent of their taxable income as income tax.
The latest increase in bank income tax collections comes amid stronger overall government revenue performance this year, driven by higher receipts from corporate income tax, goods and services tax (GST) and other major tax sources.
The Ministry of Finance has previously attributed the growth in tax collections to stronger economic activity, improved compliance and the timing of tax payments, which have contributed to a healthier fiscal position during the first half of 2026.
