31.6 percent income tax surge offsets tourism slump

Income tax collections in the first five months of this year rose by 31.6 percent compared to the same period last year, according to new figures released by the Maldives Inland Revenue Authority (MIRA).

MIRA’s data shows income tax collections reached MVR 2.75 billion by the end of May, up from MVR 2.09 billion in the same period last year. The month of May alone brought in MVR 234.24 million, compared to MVR 132.73 million in May last year.

Companies contributed the largest share of income tax during the first five months of the year, paying MVR 1.31 billion. Foreigners paid MVR 735.25 million, while individuals paid MVR 214.06 million, according to MIRA.

The authority’s figures also show that total revenue collected in the past five months amounted to MVR 16.4 billion, including USD 749 million. USD revenue in May stood at USD 89 million, a 15 percent decline compared to the same month last year.

MIRA earlier attributed the year‑on‑year decline in May’s revenue to lower receipts from tourism GST, Green Tax and airport development fees, a trend consistent with the broader slowdown in tourism‑linked revenue observed in April and May due to the sharp drop in tourist arrivals following the escalation of the conflict in the Middle East.

At the same time, income tax has remained one of the most stable and fastest‑growing components of state revenue this year. MIRA’s monthly reports show that Bank Profit Tax and Corporate Income Tax were among the strongest contributors in January and March, helping offset volatility in tourism‑dependent taxes.