Gov't revenue declines by MVR 874m in first month of 2025
While state revenue has significantly decreased during the first month of this year, revenue from all major sectors has declined, with income from various taxes and fees also dropping substantially.
The state revenue decreased by MVR 874 million in the first month of the year due to a significant decline in tax revenue, including import duty, business and property tax, corporate income tax, and personal income tax
Maldivian Rufiyaa notes inside a wallet
The state revenue has decreased by MVR 874 million in the first month of the year.
While the total revenue received by the state last month significantly declined, revenue from almost all major sectors contributing to state income has decreased.
This includes tax revenue, non-tax revenue, import duty revenue, personal income tax, business profit tax, GST, departure tax, airport development fees, other fees, and rental income.
According to the "Weekly Fiscal Development" statistics released by the Ministry of Finance, from the beginning of this year until February 6, the total revenue received was MVR 874 million less compared to the same period last year.
In the first month of this year, revenue amounted to MVR 3.7 billion. However, during the same period last year, MVR 4.6 billion rufiyaa was received.
The significant decline in revenue is attributed to a substantial decrease in tax revenue. Tax revenue has decreased by MVR 589 million. While tax revenue this year so far amounts to MVR 3.94 billion, during the same period last year, tax revenue was MVR 3.35 billion.
Looking at individual tax sectors, import duty and business and property tax revenue have notably decreased.
Business and property tax revenue has decreased by 66 percent. While MVR 454.2 million was paid during the first month of last year, only MVR 153 million was paid during this period in 2025 which is a drop of MVR 301 million.
With the signing of a free trade agreement between China and Maldives, and the elimination of duty on many items imported from China starting January, import duty revenue in January decreased by 64 percent. This year so far, MVR 138.3 million was received as import duty, while last year during this period, MVR 384.9 million was received. This represents a decrease of MVR 246 million compared to the same period last year.
Corporate income tax has also decreased. While companies paid MVR one billion in corporate income tax last year, only MVR 979 million was paid during this period in 2025, which is a decrease of MVR 69 million.
In addition to this, departure tax revenue has decreased by MVR nine million.
Personal income tax has also decreased. While MVR 72.6 million was paid as income tax during this period last year, only MVR 64.7 million was paid in the first month of this year which is approximately an MVR 11 million decline.
Non-tax revenue has also significantly decreased. So far this year, non-tax revenue is MVR 284 million less compared to the same period last year. Resort rent, airport development fees, and quota fees have all dropped.
The state has spent MVR 3.2 billion so far this year. This is MVR 1.2 billion less compared to the same period last year. While expenditure shows a decrease, expenditure on PSIP projects had also significantly decreased during this period. Only MVR 87 million was spent on PSIPs during this period, whereas last year MVR 713 million was spent during the same period. Therefore, PSIP spending this year is MVR 626 million less compared to last year.
Although overall expenditure decreased, salary and wage expenses increased by MVR 116 million. While Aasandha expenses decreased by MVR 15 million, subsidy expenditure decreased by approximately MVR nine million. Council grant funding also decreased by MVR eight million.
