President Dr Mohamed Muizzu has ratified the 19th Amendment to the Maldives Export-Import Act (Act no. 31/79), introducing substantial changes to import duties on tobacco products and electronic devices. This amendment, passed during the 44th session of the 20th Parliament, revises specific sections of the Act to reflect the government’s new approach to regulating these imports.
The updated amendment to Section 5 (m)(1)(i) now imposes increased duties on various tobacco products, including prepared tobacco, tobacco alternatives, electronic cigarettes, vaping devices, heated tobacco products, and their components. Furthermore, Section 7 (a) of the Act has been modified, with updates specifically to Chapter 24, impacting a range of products within this category.
New Duty Rates on Tobacco Products
Under the revised Act, import duties for tobacco-related products have been significantly adjusted. The updated rates are as follows:
- General tobacco and prepared tobacco products will incur a 200% duty, applicable to all items in this category except those listed separately.
- Cigarettes now carry a 50% duty, with an additional MVR 8 levy per cigarette.
- Bidi, a traditional cigarette, is similarly taxed at 50%, with an additional charge of MVR 8 per bidi.
- Flavoured chemicals used in electronic cigarettes and other tobacco products attract a 50% duty plus MVR 8 for each millilitre.
- Heated tobacco products and consumable tobacco sticks are also subject to a 50% duty, alongside an MVR 8 charge per stick.
Electronic Devices and Components
In addition to tobacco products, the amendment affects Chapter 85 (s) within Section 7 (a) of the Act, covering electronic machinery, equipment, and parts. This includes electronic cigarettes, vaping devices, and tobacco heating products, which are now subject to a 200% import duty.
Regulatory Updates Within 30 Days
As mandated by the amendment, all relevant regulations concerning these changes must be established or revised and published in the Government Gazette within 30 days of the amendment’s enactment. These adjustments mark a new regulatory direction for tobacco and electronic smoking devices, aimed at addressing both health and fiscal considerations.
The amendment came into force on 1 November 2024, ushering in a new era for the importation of these products in the Maldives.
