Government proposes amendment to reduce cigarette duty to MVR 4
The government has submitted proposed amendments to the Maldives Import-Export Act that would significantly reduce the import duty imposed on cigarettes, less than two years after the tax was sharply increased.
The bill, presented to the People’s Majlis by Komandoo MP Mohamed Ibrahim on behalf of the government, proposes lowering the specific duty on cigarettes from MVR 8 to MVR 4 per cigarette.
The revised structure would also retain a 30 percent ad valorem duty on cigarette imports.
The proposal comes after the government doubled the cigarette duty from MVR 3.50 to MVR 8 in December 2024.
Authorities had previously stated that the increase was intended to discourage tobacco use following the nationwide ban on vaping products.
In May, Minister of Homeland Security and Technology Ali Ihusaan announced that the government was considering reducing the duty, citing ongoing discussions regarding the current taxation framework.
Under the proposed amendments, bidis would also be subject to a specific duty of MVR 4 per unit, in addition to a 30 percent ad valorem duty.
The bill further includes provisions aimed at supporting smoking cessation efforts.
Nicotine replacement products, including nicotine gum and patches used to help individuals quit smoking, would be fully exempt from import duties if the legislation is approved.
The proposed changes are scheduled to be introduced during the first reading of the bill at the People’s Majlis session on Thursday.