Parliament Debates Tobacco Duty Reduction as MPs Clash Over Motives and Impact

The government’s proposal to reduce import duties on cigarettes and other tobacco products sparked debate in Parliament today, with opposition MPs questioning the rationale behind the move while government-aligned lawmakers defended it as a measure aimed at improving public health and addressing unintended economic consequences.

During discussions on proposed amendments to the Import Export Act, Kendhoo MP Mauroof Zakir argued that the decision to lower tobacco duties was driven primarily by revenue concerns rather than public health objectives.

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Mauroof said the sharp increase in tobacco duties introduced in 2024 had encouraged many smokers, particularly younger people, to turn to illegal and unregulated alternatives. He contended that the previous duty hike had been implemented mainly to increase state revenue but instead contributed to the growth of a black market while reducing government income.

According to Mauroof, smokers were pushed towards potentially unsafe products after cigarette prices rose significantly. He also criticised what he described as a lack of adequate research and consultation before the earlier policy changes were introduced.

“Even today, we are not necessarily doing this to reduce cigarette prices or because of public health concerns, but again with the aim of generating more revenue for the state,” he said during the debate.

The government, however, maintains that the proposed amendments are intended to encourage smoking cessation and support healthier lifestyle choices. Officials have said the changes are designed to create economic incentives for smokers to quit while also making cessation products more accessible.

Under the proposed amendments, the duty on cigarettes, bidis and heated tobacco products would be reduced to MVR 4 per unit from MVR 8. The legislation would also facilitate the availability of smoking cessation products such as nicotine gum and nicotine patches in the local market.

The debate also revisited the government’s earlier tobacco taxation policies. On 31 May, during events marking World No Tobacco Day, Homeland Security Minister Ali Ihsan said the government had taken a difficult but necessary decision to increase tobacco duties to MVR 8 and is considering to decrease the duty. 

Galolhu South MP Ahmed Meekail Naseem criticised the earlier tax increase, arguing that it had harmed businesses, placed strain on families and affected people’s mental wellbeing. He said major policy decisions should not be developed and approved within a single day.

Vaikaradhoo MP Hussain Ziyad said he did not oppose the current amendment but stressed the importance of reflecting on the arguments made when the duty increase was originally approved.

Government MPs defended the proposed reduction, stating that the policy reversal was based on extensive research and analysis. Several lawmakers also praised President Dr Mohamed Muizzu for supporting the amendment.

Higher tobacco duties introduced previously led to a decline in import duty revenue and contributed to the emergence of black-market activity. Officials say these developments prompted a review of the policy and informed the proposed changes. 

The bill was accepted by 49 MPs and has been referred to a committee of the whole Parliament for further consideration.