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Gov't propose amendments to increase duties on tobacco products

The government has proposed and submitted amendments to the Export Import Act aimed at increasing import duties on tobacco and tobacco products as part of its efforts to control tobacco use. The bill was presented to the Parliament by parliamentarian Ibrahim Mohamed.

The proposed amendments include increases in import duties on cigarettes, e-cigarettes, and the flavors and chemicals used in vaping products and all tobacco products. Additionally, the importation of e-cigarettes, vape products, and related items will be banned starting November 15.

Attorney General Ahmed Usham explained that the amendments propose a 25% duty and USD 0.20 per cigarette. Flavors and chemicals added to e-cigarettes or other tobacco products will incur a 50% duty and USD 0.52 milliliter on goods imported before the cutoff date.

Moreover, the amendment includes a 50% duty and USD 0.52 per stick on heated tobacco products, which are designed to be heated without combustion. The government is also proposing a 200% duty on e-cigarettes and vaping devices.

The bill outlines the estimated revenue from these import duties, projecting that Maldives will collect approximately USD 68 million next year. It also includes amendments related to the circumstances under which import duty and royalty revenues can be exempted.

Starting next month, the duties on cigarettes and tobacco will be raised, as stated by President Dr. Mohamed Muizzu. Furthermore, the President has announced plans to implement a ban on vaping, effective from December 15. He confirmed that the import of vaping devices and their components will be prohibited starting November 15.