Reduced Import Duty Revenue a ‘Net Gain’ Due to Health Benefits, Says Economic Minister

Minister of Economic Development Mohamed Saeed has said that the decline in import duty revenue this year due to increasing cigarette prices is a worthwhile trade-off, citing long-term public health benefits.

Speaking at a press conference held at the President’s Office, Saeed confirmed that the shortfall is largely due to increased cigarette prices, which have reduced imports. However, he defended the policy decision, stating that the positive impact on public health outweighs the loss in revenue.

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Saeed described the outcome as a “net gain” for the country, arguing that reduced smoking rates would ease pressure on the healthcare system and improve overall community well-being, delivering long-term economic and social benefits despite the immediate drop in import duty income.

Import duty collections for this fiscal year have fallen short of projections. While import duty revenue for the year was estimated at MVR 4.6 billion, only MVR 2.9 billion has been collected so far.