The government is seeking to significantly reduce taxes on imported tobacco products, marking a major adjustment to one of its most high-profile anti-smoking measures introduced less than two years ago.
An amendment to the Import-Export Act, sponsored by Komandoo MP Mohamed Ibrahim, was presented to Parliament on Monday morning. The bill proposes cutting the import duty on cigarettes, beedi and heated tobacco products from MVR 8 to MVR 4 per stick, while reducing the ad valorem tax from 100 percent to 30 percent.
The proposed changes would partly reverse the tobacco tax increase introduced in 2024, when President Dr Mohamed Muizzu’s administration raised the import duty on cigarettes and beedi from MVR 3 to MVR 8 per stick. At the time, the ad valorem tax was also increased from 50 percent to 100 percent.
The new bill also seeks to exempt import duty on products used to support smoking cessation, including nicotine gum and nicotine patches.
The 2024 tax hike formed part of a broader tobacco control agenda pursued by the administration. That policy package included a ban on vapes and e-cigarettes, as well as a generational smoking ban covering those born after 2007.
Those measures drew international recognition. President Muizzu received a World No-Tobacco Day Special Recognition Award from the World Health Organization, while the Maldives was also recognised by the Global Center for Good Governance in Tobacco Control.
However, the stricter tobacco controls also contributed to enforcement and revenue challenges. The ban on vapes and the sharp increase in cigarette duties created conditions for an illegal market, with smuggled vapes and cheaper cigarette brands being sold in the country. The situation has also led to losses in import revenue.
The administration had previously defended the higher duties, arguing that public health considerations outweighed the financial impact. However, the government has more recently signalled that adjustments were under consideration.
At a press briefing on 31 May, Homeland Security Minister Ali Ihusaan described the 2024 decision to double cigarette taxes as a difficult one. He said the administration was considering reducing the import duty to MVR 4 per stick, and stated that this had been recommended by the World Health Organization. The WHO has not issued an official comment on that claim.
When questioned on the matter during a press briefing on 1 June, President Muizzu denied that the move amounted to a reversal of his administration’s tobacco policy. He said the government was making necessary changes while maintaining its strict stance on tobacco products.
The proposed amendment now places the issue before Parliament, where lawmakers will be required to consider whether lower duties can address smuggling and revenue losses without weakening the broader public health objectives of the government’s anti-smoking policy.
