Economic Minister Confirms Import Duty Has to be Paid for Tobacco Products from China

Minister of Economic Development and Trade Mohamed Saeed said cigarette and tobacco products can be imported to the Maldives after paying the import duty to China, under the Free Trade Agreement (FTA) between the Maldives and China. 

During today’s parliamentary session, Minister Saeed provided written responses to questions put forward by the MP for North Galolhu constituency, Mohamed Ibrahim.

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MP Mohamed Ibrahim asked whether tobacco products imported to the Maldives are subject to import duties and, if so, what negative impact this would have on state income and how the government plans to address it. Minister Saeed responded by confirming that, under the FTA with China, tobacco products enter the Maldives with an import duty.  

“The income will depend on the quantity of tobacco and cigarettes imported from China,” Minister Saeed stated in Dhivehi.  

MP Mohamed Ibrahim also recalled previous government statements claiming the FTA between China and the Maldives would significantly lower the cost of goods in the country. He cited an example where a guesthouse costing MVR 5 million to build would cost MVR 500,000 to MVR 600,000 less due to the FTA. However, he argued that state income would decrease instead. He then asked how much revenue the state would lose in import duties each year for the first five years of the FTA and why the government has yet to disclose the agreement’s details.  

Minister Saeed explained in his written response that China’s duties on imports to the Maldives depend on the value of the imported goods. He added that the additional details MP Mohamed Ibrahim requested relate to future projections and can only be addressed once the impacts materialise. The Minister also stated that the government made the FTA public once both nations agreed to its terms and the agreement took effect.