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Parliamentary Whole House Committee endorses bill to halve cigarette duty

The Parliamentary Committee of the Whole House has approved a government‑backed amendment to the Export Import Act that cuts the excise duty on cigarettes and some other tobacco products in half.

The proposed amendment moved by Komandoo MP Mohamed Ibrahim will see the current levy of USD 0.52 halved to USD 0.26 per stick.

The amendment also widens the duty‑free status to nicotine‑replacement therapies such as chewing gum and patches, which will be exempt from import duties.

In addition to cigarettes, the proposed change to Article 7 of the Act lowers the duty on beedis and heated tobacco products from USD 0.52 to USD 0.26 each.

The government’s fiscal note attached to the bill warns that, if the amendments take effect on 1 July, the projected import‑duty revenue for the current fiscal year will fall by around USD 1.36 million.

The Committee of the Whole House debated the proposal and passed it without modification, voting unanimously in favour of the 69 members present.