Parliament passes bill to reduce cigarette duty to MVR 4

The People's Majlis on Wednesday passed a government bill to reduce the specific customs duty on cigarettes from MVR 8 to MVR 4 per cigarette.

The amendment to the Import-Export Act was introduced last week by Komandoo MP Mohamed Ibrahim on behalf of the government.

On Tuesday, the Committee of the Whole House endorsed the bill without any amendments.

The committee's report was approved during Wednesday's parliamentary sitting with the support of 68 members, including MPs from the opposition Maldivian Democratic Party (MDP). No members voted against the bill.

Speaking before the vote, Baarashu MP Ibrahim Shujau, Deputy Leader of the ruling People's National Congress (PNC) Parliamentary Group, said the amendment would reduce the retail price of a packet of cigarettes to MVR 130.

Cigarettes currently retail for more than MVR 230 per packet. Before the duty was increased in December 2024, a packet sold for around MVR 100.

The cigarette duty was raised from MVR 3.50 to MVR 8 in December 2024. At the time, the government said the increase was intended to discourage a rise in cigarette smoking following the ban on vaping products.

Last month, Minister of Homeland Security and Technology Ali Ihusaan said the government was considering reducing the duty after receiving advice from the World Health Organisation (WHO).

Speaking at a press conference on Monday, President Dr Mohamed Muizzu said the proposed reduction should not be viewed as a reversal of government policy.

The bill will now be sent to the President for ratification before it comes into force.