As the Maldives Inland Revenue Authority (MIRA) marks its 15th anniversary on August 2, 2025, the occasion reflects not only institutional longevity but a fundamental shift in how the Maldives manages its economy. Since its establishment in 2010 under the Tax Administration Act, MIRA has played a central role in building a sustainable, rules-based public revenue system that has enhanced state capacity and reduced dependence on external financing.
Before MIRA, the Maldivian government relied heavily on import duties and fixed tourism charges, with minimal inland taxation and limited compliance structures. That changed in 2011 with the introduction of the Tourism Goods and Services Tax (T-GST), followed by the nationwide Goods and Services Tax (GST) and the Business Profit Tax (BPT). These changes not only expanded the tax base but also brought significant portions of the domestic economy into the formal sector.
In the years since, MIRA has transformed revenue administration in the country. In March 2025, MIRA collected MVR 3.38 billion, representing a 15.1% increase over the same month in 2024, with GST accounting for 57% of the total. The growth continued in April, with MVR 2.6 billion in revenue, a 22.7% increase compared to the previous year, and GST contributing over 63% of that amount.
This upward trend is also reflected in broader state revenue. According to the Ministry of Finance’s Weekly Fiscal Development Report, as of July 10, 2025, the state received MVR 20.5 billion in revenue and grants, a 7.9% increase compared to the same period in 2024. Of this, MVR 15.7 billion was generated from taxes, accounting for 76.3% of total revenue. The increase is largely attributed to changes in tax policy, including hikes in Green Tax, which saw a 95.8% increase, and Departure Tax, which rose 52.6% year-on-year.
Tourism-related revenue also saw a significant boost. The Airport Development Fee increased by 49.3%, reflecting a surge in tourist arrivals. As of July, the Maldives had welcomed over 1.2 million visitors, a 9.6% increase compared to the same period last year. In addition, revenue from resort lease rents, land acquisition and conversion fees, and lease extension fees also increased, resulting in a 50.3% rise in deposits to the Sovereign Development Fund, now standing at MVR 1.1 billion.
By July 17, 2025, the government had collected 51.6% of the total revenue and grants projected in the 2025 state budget. Meanwhile, 39.6% of the total budgeted expenditure had been spent during this period—reflecting improved cash flow and revenue management mechanisms, many of which fall under MIRA's administrative framework.
MIRA’s digital transformation has also been pivotal. The authority has invested in online platforms such as MIRAconnect and e-filing systems, making tax compliance more efficient and accessible. Nearly all tax payments are now processed electronically, reducing administrative overhead and improving transparency.
Over 15 years, MIRA has become more than a tax authority; it has been an agent of economic transformation. By institutionalizing tax compliance, increasing voluntary participation, and modernizing revenue collection, MIRA has made it possible for the Maldives to fund critical public services, invest in development, and build resilience in the face of external shocks. Its influence is now deeply embedded in the way the country collects and spends public funds, a legacy that continues to shape the nation’s economic trajectory.