The government's foreign currency revenue fell by 17 percent in May compared with the same month last year, according to figures released by Maldives Inland Revenue Authority (MIRA).

MIRA said the state received USD 89 million in foreign currency revenue last month, down from USD 105 million recorded in May 2025.

The decline was driven by lower collections from Tourism Goods and Services Tax (TGST), green tax, departure tax and airport development fees.

TGST revenue fell 21 percent to MVR 756 million in May, compared with MVR 963 million during the same month last year.

Green tax revenue also recorded a significant decline, falling 32 percent to MVR 139 million from MVR 205 million a year earlier.

The state collected MVR 156 million in departure tax and MVR 158 million through airport development fees during the month.

The government has linked the decline in tourism-related revenue to the impact of the conflict in the Middle East, which began in March and has affected travel demand in key tourism markets.

Overall government revenue fell by five percent in May. The state received MVR 2.1 billion during the month, compared with MVR 2.2 billion in May last year.