Parliament accepts bill to reduce cigarette duty, sends it to committee of the whole house

The People's Majlis on Wednesday accepted a government-backed bill proposing to reduce the specific import duty on cigarettes from MVR 8 to MVR 4 per stick and referred it to the Committee of the Whole House for further consideration.

The bill seeks to amend the Import-Export Act and 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 in December 2024 following the nationwide ban on vaping products.

Last month, Minister of Homeland Security and Technology Ali Ihusaan announced that the government was considering reducing the duty to MVR 4. The legislative proposal was submitted to Parliament approximately two weeks later.

Following debate on the bill during Wednesday's sitting, lawmakers voted to accept the proposal. The bill was approved with 49 votes in favour.

After the vote, Speaker of Parliament Abdul Raheem Abdulla announced that the legislation had been referred to the Committee of the Whole House for detailed review.

The Committee of the Whole House comprises all members of Parliament and is often used to examine legislation relating to financial matters or bills requiring expedited consideration.

Under the proposed amendment, the revised duty rate would take effect on the date the legislation is ratified.

The bill also states that any regulatory amendments required as a result of the change must be completed within 30 days of ratification.

According to government officials, the proposal to reduce the duty was formulated following technical advice received from the World Health Organization.

The bill will now undergo committee review before returning to the full chamber for further consideration.