TGST Revenue Down MVR 126 Million as Tourist Arrivals Lag

The Maldives' Tourism Goods and Services Tax (TGST) revenue has fallen by MVR 126 million year-on-year, according to the Finance Ministry's Weekly Fiscal Development Report issued on 14 October 2026. The report showed that MVR 8.09 billion had been received in TGST so far. That was an increase of 0.03 billion rufiyaa over the previous week's figure of MVR 8.06 billion. Despite the weekly rise, collections were well below the same period last year, when MVR 8.21 billion had been received. The shortfall stands at MVR 126 million. TGST contributes the largest share of state revenue. As receipts have fallen, the government has taken several measures to increase revenue from the tourism sector. In July last year, the TGST rate was increased from 16 percent to 17 percent, and from 1 December 2024 the airport development fee and departure tax were raised. A decision was also made to collect tax from offshore booking platforms and foreign tour operators starting this month. However, after concerns were raised by local and foreign companies over the change, Tourism Minister Mohamed Ameen indicated that reforms would be introduced to address those concerns. The main reason behind the fall in TGST despite the government's revenue measures is the ongoing war in the Middle East. Due to the war that began on 28 February, many flights scheduled to come to the Maldives have been cancelled, and tourist arrivals are still 3.5 percent lower than last year. The Tourism Ministry nonetheless expects that with the upcoming peak season, tourism will record a significant increase by the end of the year.