Parliament Committee Approves Amendment to Reduce Cigarette Import Duty
Cigarettes | Photo: Envato
The Committee of the Whole House of Parliament has approved an amendment to reduce the import duty on cigarettes from MVR 8 to MVR 4, reversing a previous increase introduced by the current administration.
The decision was taken during today’s committee sitting following a government-proposed amendment to the Export-Import Act. The bill, introduced in Parliament last Monday by Komandoo MP Mohamed Ibrahim on behalf of the government, was accepted by the House on Wednesday before being sent to committee for review.
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If passed, the relevant regulations will need to be amended within 30 days, after which the revised tax rates are expected to come into effect. Cigarette prices are therefore likely to fall once the changes are implemented.
The proposal follows a sharp increase in tobacco taxation introduced in November 2024, when the specific duty on cigarettes was raised from MVR 3.30 to MVR 8. The government had said at the time that the higher rates were intended to discourage tobacco consumption.
During today’s deliberations, members from both the opposition Maldivian Democratic Party (MDP) and the ruling People’s National Congress (PNC) voiced support for the bill.
Some MDP members called for consultations with relevant ministries and authorities prior to passage, in order to assess the potential impact of the duty reduction on state revenue.
Independent MP for Addu Meedhoo Abdul Rahman proposed adjustments to tobacco taxation, suggesting an increase in duty on beedis to 40 per cent and a reduction in duty on heated tobacco products to 20 per cent. MDP MP for Vaikaradhoo constituency Hussain Ziyad also proposed shifting to a per-gram taxation model for such products.
However, as the proposed amendments were not submitted in writing to the administrative desk, the chair proceeded with a vote on the bill in its original form.
The bill was ultimately passed unanimously by 69 members who participated in the Committee of the Whole House vote.
