News

Parliament approves amendments to increase duties on tobacco products

The Parliament has officially approved the amendments to the Export Import Act, proposed by Parliamentarian Ibrahim Mohamed, on behalf of the Government. The primary objective of the bill includes increasing import duties on tobacco and tobacco products as part of its efforts to control tobacco use. The amendment was passed and granted parliamentary approval, with the unanimous votes of 71 members.

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.

Furthermore, the amendments propose a 25% duty and USD 0.20 per cigarette. Meanwhile, flavors and chemicals added to e-cigarettes or other tobacco products will incur a 50% duty and USD 0.52 per 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.