Economic Minister Mohamed Saeed has confirmed that tobacco products and cigarettes will not be exempt from import duties under the Free Trade Agreement (FTA) between the Maldives and China. In a written response to an inquiry by North Galolhu MP Mohamed Ibrahim, Saeed stated that such products would be subject to the same duty rates as those imported from other countries.
The minister clarified that the revenue generated from these duties would depend on the volume of tobacco and cigarettes imported from China. He further explained that duties on Chinese imports are determined based on the value of the imported items, and the exact figures could only be confirmed once transactions are completed.
Signed in December 2014 during former President Abdulla Yameen Abdul Gayoom’s administration, the China-Maldives FTA was approved by parliament in 2017. However, the agreement was not implemented under the previous administration of President Ibrahim Mohamed Solih. The current government has now enforced the agreement, which came into effect in January 2025. Officials argue that the FTA will primarily benefit small and medium enterprises by reducing import costs on various goods.
While the government has previously suggested that commodity prices would decrease under the FTA, concerns remain regarding potential revenue losses from reduced import duties on Chinese goods. Responding to these concerns, Minister Saeed reiterated that the total impact would only become clear once trade volumes under the agreement are established.
