MPs debate on hike in cigarette duty

On October 15, President Mohamed Muizzu announced a major increase in import duties on cigarettes and vaping products, sparking a heated debate among Maldivian lawmakers. 

The proposed amendment to the Import and Export Act, which aims to raise the specific and ad-valorem rates of import duties, has been submitted to parliament for approval. If enacted, the tax hike is set to take effect next month, marking a major shift in the nation's tobacco control strategy.

Under the proposed amendment, the government intends to:

The parliamentary debate on Tuesday revealed strong differences in opinion among lawmakers, with the opposition questioning the government's motivations and the ruling party defending the public health benefits of the move.

During the debate, opposition MPs from the Maldivian Democratic Party (MDP) voiced concerns that the primary motivation behind the tax increase was to boost state revenue rather than protect public health. 

Kendhoo MP Mauroof Zakir was skeptical about the actual impact of the new taxes, particularly in relation to vaping devices.

Mauroof noted that the ban on vaping products would only take effect on November 15, giving importers a brief window to bring in vape-related goods. He questioned how much revenue the government could realistically gain from such a short-term opportunity, arguing that the timeline seemed rushed and lacked proper legislative foundation. 

Mauroof pointed out that the bill did not introduce the necessary legal framework to enforce a full ban on vaping devices.

Hanimaadhoo MP Abdul Gafoor Moosa also expressed reservations, suggesting that the tax increase was excessive and might place an undue burden on Maldivians, particularly given that approximately 40% of the population aged 18 and over are smokers. He emphasised that while he was not opposed to higher cigarette taxes, he believed the increase should be more measured to ensure it is sustainable for the public.

Vaikaradhoo MP Hussain Ziyad agreed that higher duties would boost state revenue, but he argued that the money collected might end up being spent on health care costs associated with smoking-related diseases. Ziyad warned that merely raising cigarette prices would not effectively address the issue, citing the rise in vape popularity as evidence of unintended consequences.

Ruling party members from the Progressive National Congress (PNC) rejected the opposition's criticism, emphasising that the proposed amendment is not about generating revenue but about safeguarding the health of future generations.

Hithadhoo Central MP Ahmed Azaan defended the ban on vaping, asserting that if the government’s goal was purely financial, it would have raised taxes on vaping products instead of banning them. 

He cited examples from other countries where similar measures have successfully curbed smoking rates. According to Azan, the World Health Organisation (WHO) has shown that increasing the price of tobacco leads to a decrease in consumption, highlighting Australia's reduction in smoking rates from 20% to 11% following a significant price hike.

Azaan also suggested the possibility of introducing age-based restrictions, such as barring individuals born after a certain year from buying tobacco products, to ensure a smoke-free future generation.

Vilimale MP Mohamed Ismail echoed this sentiment, insisting that the government’s intentions were not financially driven. He argued that the amendment aims to protect Maldivian youth from the harmful effects of smoking, particularly given the rising trend of vaping among young people.

According to Ismail, the proposed increase in cigarette duty is a necessary step toward improving the nation's public health and reducing the long-term costs associated with smoking-related illnesses.

If the amendment passes, the cost of a pack of cigarettes is expected to rise sharply, with some estimates suggesting an increase of MVR 100 per pack. The government hopes that higher prices will discourage smoking, especially among younger generations, who may be more price-sensitive.