Parliament Report Highlights Surge in Cigarette and Vape Smuggling

The parliamentary Committee on National Security Services has reported a significant rise in the illegal importation of cigarettes and vapes into the Maldives, warning that the volume of smuggled tobacco products now exceeds those brought into the country through lawful channels with duty paid.

Presenting the committee’s findings to the People’s Majlis, Deputy Speaker Ahmed Nazim, who chaired the inquiry, said the government was losing substantial revenue despite tobacco being one of the most heavily taxed commodities in the country. He noted that while import duty on tobacco was increased with the intention of boosting state income and discouraging consumption, the expected revenue growth had not materialised.

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According to Nazim, who also represents Dhiggaaru constituency, the spike in smuggling began shortly after duty rates were raised and a ban on vape products was introduced. He said this shift had created a profitable market for illicit traders. “Illegal cigarettes are now of better quality than those brought in legally. The same applies to vapes. They are readily accessible, with some even being sold through social media platforms,” he said.

The report recommends a series of reforms to the Maldives Customs Service to strengthen border enforcement, improve transparency and prevent revenue losses. These include policy revisions and mandatory asset declarations for senior Customs officials and their immediate family members. Nazim stressed that these measures should be acted upon promptly. “This is not something that can remain on paper. Implementation is necessary,” he said.

The committee’s findings come as authorities continue to investigate one of the country’s largest tobacco smuggling cases. In April 2025, two containers containing 1,360 cases of cigarettes — estimated at 13.6 million sticks and valued at more than MVR 120 million in duties — were seized at the Hulhumalé Sea Cargo Terminal. The shipment, linked to cargo imported under the name of the Bin Laden Group, was stolen from port custody. Several individuals, including prominent businessmen and senior government officials, have since been arrested in relation to the case.

The committee’s report comes at a time when authorities continue to investigate one of the largest tobacco smuggling cases uncovered in the Maldives. On 26 April 2019, two containers belonging to Maldives Ports Limited (MPL) were stolen from the Hulhumalé port and later found to contain 1,360 cases of cigarettes — estimated at around 13.6 million sticks — smuggled under the name of the Bin Laden Group, the main contractor for the new Velana International Airport terminal project. 

The cigarettes, with an estimated duty value of MVR 122 million, were discovered concealed within a plywood shipment during an inspection at the Hulhumalé Sea Cargo Terminal and later placed under MPL custody. 

Police have since made nine arrests in connection with the operation, including two prominent businessmen: Lotus Company owner Ahmed Arif (known as Aattey), 61, and Apollo Holdings owner Mohamed Waheed (known as Dhigali), 65, who is alleged to have financed the scheme. Two senior government officials were also arrested — Customs Superintendent Zhiwar Ismail, 40, and Muaz Ali, 48, General Manager of Engineering and Projects at the Maldives Industrial Fisheries Company (MIFCO). In addition, police detained Adam Waheed, 54, of Noonu Miladhoo, said to have captained the vessel allegedly used to move the stolen containers.