Smuggled cigarettes exceed legal imports: Nazim

The number of smuggled cigarettes now exceeds those legally imported with duties paid, Deputy Speaker of Parliament Ahmed Nazim said today.

Speaking while presenting a report by the Parliament’s Committee on National Security Services (241 Committee), Nazim said the state is losing significant revenue due to widespread smuggling following the government’s decision to increase cigarette import duty.

“Although the state expects to receive revenue through import duty, that target is not being met,” he said.

“The main reason is the change in cigarette duty. What has happened to cigarettes since that change and to vapes since the ban are deeply concerning issues.”

Nazim said the government’s decision to increase cigarette duty and ban vape products was made with good intentions. However, he noted that smuggling of both products has increased drastically since the policy took effect.

“There are now more smuggled cigarettes than cigarettes imported with duties paid. The same applies to vapes. They are available and even sold openly through social media accounts,” he said.

He added that the availability of these products indicated they were entering Maldives through customs, and urged reforms within the Customs Service.

Nazim said the 241 Committee’s recommendations aim to curb cigarette and vape smuggling, stressing that implementation is crucial.

“These recommendations will close the doors [to smuggling]. This is directly tied to state revenue. People’s tax money is being lost while others profit,” he said.

The remarks follow a major cigarette smuggling case uncovered in April, when customs seized two 40-foot containers filled with 1,360 cases - equivalent of 13.6 million sticks of cigarettes, declared under the name of Saudi Arabia’s Bin Laden Group.

Customs estimated the seized cigarettes to be worth MVR 122 million. The shipment, disguised in plywood cargo, was intercepted during an operation at the Hulhumale' Sea Cargo Terminal.

The containers remained under Maldives Ports Limited (MPL) custody while investigations continue and the case awaited referral to the Prosecutor General’s Office, according to Customs.