Zameer says revenue growth from new businesses, not higher taxes

Finance Minister Moosa Zameer on Tuesday said the government has no intention of increasing taxes and instead aims to expand state revenue by creating new businesses and generating additional income from those sectors.

Speaking during the parliamentary debate on the proposed 2026 state budget, Zameer said the government sometimes faces difficulties in managing expenditure, but the upcoming budget is expected to proceed without obstacles. He said the budget does not introduce new revenue measures, but it has been formulated to ensure that government services and commitments can continue without interruption.

Zameer said he had reviewed concerns raised about whether the economy could sustain its current growth path. “It will be sustainable according to the current MMA forecast and our economists’ forecast,” he said.

He said development projects such as the Addu airport and the Hanimaadhoo International Airport expansion would have positive effects on the economy. “I believe we will get the growth that we got when tourism was developing near Malé in the 1980s,” he said.

Zameer outlined several efforts underway to expand the economy, including:

He said businesses that currently rely on government subsidies would need to transition into self-sustaining operations. He added that tax revenue would increase as digitalisation under the “Maldives 2.0” policy enables the introduction of innovative financial mechanisms.

“The President has no intention of raising any taxes. So what we need to do is bring in more businesses and create businesses that will pay more taxes,” Zameer said.

He said concerns about debt levels had arisen because previous administrations lacked a sustainable repayment strategy. Zameer said the current government now has the means to manage debt. “We will keep our spending trajectory with the new debt trajectory at a sustainable level,” he said.

The 2026 budget is estimated at MVR 64 billion, including: