The Maldives Inland Revenue Authority (MIRA) reported a 20 percent increase in tax revenue collected in United States dollars (USD) during February, reflecting the strength of the country’s tourism sector. Yet total dollar-denominated revenue fell to USD 126.85 million, down from USD 137.72 million in the same period last year, a 7.9 percent contraction.
The decline stemmed largely from a sharp reduction in non-tax revenue, particularly lease period extension fees. MIRA’s data show that payments for these extensions dropped to USD 5.9 million in February, compared with USD 35 million in the corresponding period last year. Overall non-tax revenue stood at USD 17.8 million, significantly lower than the USD 47.4 million recorded a year earlier.
Tax-based revenue collected in dollars, by contrast, expanded markedly. The tourism goods and services tax accounted for the largest share. While MVR 1.15 billion (USD 74.61 million) was collected in local currency, dollar collections for the same tax reached USD 75.2 million, a 25 percent increase compared with February of the previous year.
The green tax was the second-largest contributor to dollar-denominated tax revenue. MIRA’s figures show that green tax payments in dollars rose to USD 13 million last month, up from USD 9.7 million a year earlier. Income tax payments in dollars also grew, generating USD 11.98 million in February.
In total, tax revenue collected in dollars reached USD 108.9 million, compared with USD 90.2 million in the same period last year. The increase in dollar-based tax receipts corresponds directly with a rise in tourist arrivals, underscoring the sector’s central role in sustaining the country’s fiscal position.