TGST drives 10% rise in state revenue as collections reach MVR 27.6 billion

A parliamentarian browses the 2026 budget book on October 30, 2025: Recurrent expenses make up 62 percent of the proposed budget for 2026. (Photo/People's Majlis)

State revenue has increased by 10.4 percent so far this year compared to the same period last year, according to the Finance Ministry’s Weekly Fiscal Developments report published Sunday.

The latest update from the Ministry of Finance and Public Enterprises shows the state received MVR 27.61 billion in revenue and grants as of August 20, up from MVR 25.00 billion during the same period last year.

Tax revenue reached MVR 21.48 billion, reflecting a 12.1 percent increase.

Tourism Goods and Services Tax (TGST) remained the main driver of revenue growth. TGST collections rose to MVR 7.39 billion, an increase of MVR 512.1 million or 7.4 percent compared to MVR 6.88 billion recorded last year.

A worker wears protective gear as he restocks vegetables at a grocery store in Male' City on May 27, 2020. (Sun Photo/Fayaz Moosa)

Business and property tax revenue also increased significantly, rising 20.5 percent to MVR 5.55 billion. This includes:

Corporate income tax: up 7.1 percent to MVR 2.86 billion
Non‑resident withholding tax: up 10.2 percent to MVR 924.5 million
Other business and property taxes: MVR 1.39 billion, up 87.9 percent

According to the Finance Ministry, tax revenue from major sectors continues to grow, while government spending on councils, public services and infrastructure development projects has also increased.

By Azhaar Abdul Azeez

Writer