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President delivers his presidential address. (Photo/Parliament)

Tobacco tax hike to fund cessation programmes, president says

Additionally, the government has banned the import and use of vape products in the Maldives.

6 February 2025

President Mohamed Muizzu announced Thursday that revenue generated from the increased taxes on cigarettes and bidis will be allocated to tobacco cessation healthcare initiatives.

Speaking at parliament while delivering his second presidential address, President Muizzu outlined the recent tax changes on tobacco products, which took effect on 1 November. These include:

  • An increase in the specific rate of import duty on cigarettes and bidis from MVR 3 to MVR 8 per cigarette

  • An increase in the ad valorem rate on cigarettes and tobacco products from 50% to 100%

Following these changes, the price of a pack of cigarettes has increased.

"Any additional revenue from the change in cigarette prices will be spent on preventive healthcare programmes and projects," the president said.

He also detailed further steps planned to reduce tobacco use, including:

  • Establishing at least one ‘Tobacco Cessation Clinic’ in every inhabited island

  • Making tobacco cessation medications available in cities and regional hospitals through STOC

Additionally, the government has banned the import and use of vape products in the Maldives. The ban, which came into effect on 15 December, includes fines for violations.

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