Maldives Inland Revenue Authority (MIRA) has reported that government revenue collection in May fell below expectations, with lower tourist arrivals contributing to a decline in several key revenue streams.

According to MIRA's latest figures, the state collected USD 132.99 million during the month, including USD 88.54 million in foreign currency.

The total represents a 5.8 percent decrease compared with revenue collected during the same period last year.

Authorities attributed the decline largely to a reduction in tourist arrivals, which affected income from major sources such as Goods and Services Tax (GST), tourism land rent, and migrant worker quota fees.

Tourist arrivals during the period were impacted by disruptions linked to the conflict in the Middle East.

Despite the downturn, revenue performance received some support from lease extension fees, which generated income this year after recording no collections from the category during the corresponding period in 2025.

MIRA also intensified enforcement and recovery efforts to strengthen collections.

These initiatives contributed USD 24.78 million to total revenue, accounting for a significant portion of the month's receipts.

Late tax payments represented 13.8 percent of total collections, while proactive recovery measures generated 21.9 percent.

Revenue recovered through enforcement activities included funds collected via formal notices, dues settlement programs, instalment arrangements, payment reminders, and other compliance measures.

Tax revenue continued to account for the largest share of state income.

GST generated USD 74.61 million, representing more than half of total revenue collected during the month. Income tax contributed USD 15.18 million, while green tax collections reached USD 9.02 million.

Other notable revenue sources included airport development fees, which generated USD 10.25 million, and departure tax collections of USD 10.12 million.

Work permit fees contributed an additional USD 460,442.