Govt submits bill to reduce cigarette duty to MVR 4 per stick

The government has submitted a bill to Parliament proposing a reduction in the specific import duty on cigarettes from MVR 8 to MVR 4 per stick.

The proposed amendment to the Import-Export Act was submitted on behalf of the government by Komandoo MP Mohamed Ibrahim.

The specific duty on cigarettes was increased from MVR 3.50 to MVR 8 per stick in December 2024. The increase was introduced following the ban on vaping products, with the government stating at the time that the measure was intended to discourage increased tobacco consumption.

The proposed legislation would reduce the specific duty to MVR 4 per cigarette while retaining the existing ad valorem duty of 30 per cent.

The bill also proposes applying a specific duty of MVR 4 per beedi, in addition to a 30 per cent ad valorem duty.

In addition, the amendment seeks to exempt certain smoking cessation products from import duties.

Products such as nicotine gum and nicotine patches, which are designed to assist individuals seeking to stop smoking, would be subject to a zero per cent duty rate under the proposal.

The possibility of reducing cigarette duties was first raised publicly by Home Minister Ali Ihusaan during a press conference on 31 May, when he stated that the government was considering revising the tax structure.

The first reading of the bill has been included on the agenda for Monday's sitting of the People's Majlis.

If approved, the amendment would revise the current duty structure for tobacco products and smoking cessation products imported into the Maldives.