Economic Minister Mohamed Saeed has confirmed that Maldives will not exempt import duties on tobacco products and cigarettes under the Free Trade Agreement (FTA) signed with China.

Minister Saeed made this statement in a written response to questions raised by North Galolhu MP Mohamed Ibrahim (Kudu).

The responses were presented during the parliamentary session held today.

MP Kudu inquired whether the FTA would eliminate duties on tobacco products and cigarettes imported from China and how this would impact the estimated revenue from cigarette imports. He also questioned what measures would be taken to offset any potential revenue loss.

In his written reply, Minister Saeed clarified that duties on tobacco products and cigarettes would remain in place under the China-Maldives FTA.

Addressing further concerns raised by MP Kudu, Saeed noted that the reduction in import duties under the FTA would likely lower the prices of goods imported from China.

MP Kudu also questioned the amount of revenue that would be lost due to the duty cuts and why the full details of the FTA had not yet been disclosed.

The China-Maldives Free Trade Agreement was signed in December 2014 during the administration of former President Abdulla Yameen.

However, the agreement was not implemented under President Ibrahim Mohamed Solih's government and only came into effect on January 1 this year.