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Economy

Tourism GST slips as deficit widens to MVR 4.5 billion

Tourism GST collections are 1.8% lower than last year so far, while government spending has risen 17%, leaving a MVR 4.5 billion deficit by mid-October, Finance Ministry figures show.

By 1 min read
File photo: water villas at Medhufushi Island Resort; not of the event.
File photo: water villas at Medhufushi Island Resort; not of the event. Photo: Priyaflorenceshah / Wikimedia Commons, CC BY-SA 4.0 (Water villas at Medhufushi Island Resort in the Maldives.jpg)

The government collected MVR 8.12 billion in Tourism Goods and Services Tax between 1 January and 15 October, 1.8% less than the MVR 8.27 billion collected in the same period last year, according to the Finance Ministry's latest weekly fiscal report.

Over the same period, government spending rose 16.9% to MVR 36.39 billion, while revenue and grants grew 2.6% to MVR 31.89 billion. That left an overall deficit of MVR 4.50 billion, against MVR 52 million at the same point in 2025.

Tourism taxes down, other taxes up

The fall in Tourism GST was offset by General GST, charged on goods and services outside the tourism sector, which rose 8.2% to MVR 4.43 billion. Total GST collections were up 1.5% at MVR 12.55 billion.

Other tourism-linked income also fell. Green tax collections dropped 5.4% to MVR 1.62 billion, and rent from resorts dropped 8.3% to MVR 1.37 billion. Tourist arrivals were 3.2% lower than last year as of 18 October, according to Tourism Ministry figures.

This year's approved budget estimates MVR 11.47 billion from Tourism GST. With about 79% of the year gone, 71% of that amount has been collected.

Tax revenue overall rose 7% to MVR 24.63 billion, helped by:

  • Import duties: up 15.2% to MVR 2.79 billion

  • Corporate income tax: up 9.2% to MVR 3.01 billion

  • Non-resident withholding tax: up 10.4% to MVR 1.09 billion

  • Airport service charges: up 8.9% to MVR 1.55 billion

Non-tax revenue fell 12.9% to MVR 6.74 billion.

Spending

Recurrent spending, which covers salaries, pensions and running costs, rose 17.2% to MVR 31.35 billion. Capital spending rose 15.2% to MVR 5.04 billion.

The approved budget projects a deficit of MVR 8.84 billion for the full year.

The figures come from the ministry's Weekly Fiscal Developments report for week 41 (WFD/41/2026), published on 20 October. The ministry says revenue and spending figures may change as reconciliation work continues.

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