2026 budget relies on current tax reforms to boost revenue

Finance Minister Moosa Zameer said on Thursday that the MVR 64 billion budget for 2026 does not include any new measures to increase state revenue.

Presenting the budget in Parliament, Zameer said the policies introduced earlier to boost revenue will have their full effect next year.

He noted that many tax and fee rates had been revised in recent years and that no additional revenue-raising policies were proposed in the new budget.

“This approach is intended to promote economic recovery without slowing down activity. However, giving full authority to enforcement agencies to implement tax laws and resolving the legal challenges they face will help improve the collection of outstanding revenue,” Zameer said.

According to the minister, tax revenue is projected at MVR 31.3 billion for 2026, while non-tax revenue is expected to reach MVR 8.7 billion. The government also anticipates receiving MVR 373.6 million in grants, bringing the total revenue estimate to MVR 40 billion.

“No changes in revenue policy have been proposed to increase revenue in 2026. However, amendments to strengthen tax enforcement and improve revenue collection are expected to be passed with this budget,” Zameer said.