Government revenue and grants reached MVR 27.92 billion as of August 27, 2026, representing a 6.9 percent increase compared with the same period last year, according to the Ministry of Finance.
The Ministry’s latest Weekly Fiscal Developments Report shows the state had collected MVR 26.12 billion during the corresponding period in 2025.
The improvement was primarily driven by stronger tax collections, increased revenue from property and land-related sources, and a sharp rise in grants received by the government.
Tax revenue increased 9.2 percent year-on-year to MVR 21.73 billion, up from MVR 19.91 billion during the same period last year.
Tourism Goods and Services Tax remained one of the largest individual revenue sources, generating MVR 7.52 billion, an increase of 4.4 percent.
Business and property tax collections recorded stronger growth, rising 19.7 percent to MVR 5.55 billion.
Corporate income tax contributed MVR 2.87 billion, representing an increase of 6.1 percent compared with last year, while General Goods and Services Tax collections stood at MVR 3.56 billion.
Revenue from import duties also improved, increasing 12.1 percent to MVR 2.21 billion.
Airport service charges and departure taxes generated MVR 1.26 billion during the period, an increase of 8.2 percent year-on-year.
Property and land revenue rises 32 percent
The government recorded particularly strong growth from property and real estate-related sources.
Revenue in this category increased 32 percent to MVR 1.68 billion, including MVR 1.17 billion collected from resort rentals.
Another MVR 424 million was generated through land purchase payments and fees associated with changes to land use.
Grant receipts also recorded a substantial increase, rising 88 percent to MVR 471.8 million.
The figures underline the continued importance of tourism and related economic activity to government finances, with TGST, resort rents and airport-related taxes collectively contributing billions of rufiyaa to state revenue.
The latest revenue growth comes as the government moves ahead with several changes aimed at strengthening domestic revenue collection.
President Dr Mohamed Muizzu recently ratified amendments extending GST obligations to qualifying foreign tour operators, travel agents and offshore booking platforms selling Maldives tourism products. The government estimates those changes could generate an additional MVR 1.6 billion annually.
A separate amendment has doubled withholding tax on payments to non-resident construction contractors from five percent to 10 percent, which the Maldives Inland Revenue Authority estimates could bring in an additional MVR 251 million annually.
Changes to the Tax Administration Act have also expanded MIRA’s powers relating to assessments, investigations and the recovery of unpaid state revenue.
Government expenditure, meanwhile, stood at MVR 29.96 billion as of August 27, compared with MVR 25.50 billion during the corresponding period last year. Of this, MVR 26.14 billion was recurrent expenditure and MVR 3.82 billion was capital expenditure.
The government’s revenue performance during the remainder of 2026 will also be influenced by the implementation of recently approved tax and foreign currency reforms, several of which introduce new obligations for businesses operating within or earning income connected to the Maldives.
