Tobacco tax revenue to be used for strengthening health sector: President Dr. Muizzu
President Dr. Mohamed Muizzu has stated that revenue from the newly increased tobacco tax will be used to strengthen the country’s health sector.
Speaking during the seventh episode of the President’s Office podcast “Rayyithunnaa Eku” (With the People), President addressed criticism from the opposition regarding the recent hike in tobacco import taxes.
Critics have accused the government of raising the tax solely for revenue generation rather than as part of a broader tobacco control strategy.
In response, President said that while the government is working toward a tobacco-free Maldives, an immediate ban is not realistic due to the high number of smokers in the country.
Instead, he noted that the approach would be gradual, with increased taxation forming part of the plan.
Our policy is to use the money that needs to be paid to import tobacco to strengthen the health sector. I am repeatedly telling people to leave this business. What we get, we will spend on preventive healthcare. This means raising awareness to avoid diseases, and strengthening the treatment system when you get sick.
President Muizzu said
Significant revisions to tobacco taxation were implemented on November 1 last year, including:
Increasing the specific import duty on cigarettes and bidis from MVR 3 to MVR 8, raising the price of each cigarette by MVR 5
Doubling the ad valorem rate on cigarettes and tobacco products from 50% to 100%
As a result, the retail price of a pack of cigarettes has surged to MVR 240.
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