The bill submitted on behalf of the government and passed by Parliament in lowering the duty levied on a cigarette from MVR 8 to MVR 4 by amending the Export-Import Act has been ratified by President Dr. Mohamed Muizzu.
The bill was proposed on behalf of the government by Komandoo Constituency MP Mohamed Ibrahim, with it being passed unanimously by the 69 members present for voting.
Amendments to the Export-Import Act:
- Cigarettes: Duty to be at 30 percent, with the duty for individual cigarettes to be lowered to MVR 4.
- Hand-rolled cigarettes: Duty to be at 30 percent, with the duty for individual hand-rolled cigarettes to be lowered to MVR 4.
- Heated tobacco products: Duty to be at 30 percent, with the duty for individual sticks to be lowered to MVR 4.
The amendment includes that duty shall not be paid for nicotine chewing gum, nicotine patches and similar products.
The bill reads that upon ratification, all rules and regulations that need amending are to be amended and gazette within 30 days from today.
The last change to tobacco import duty was brought in November 2024. At that time, the duty levied on cigarettes was increased from MVR 3.30 to MVR 8. However, the government has said that the decision to lower the duty is being made due to advice that had been received from the World Health Organization (WHO) in lowering the import duty to MVR 4.
The government has previously said that they will continue to bring changes to the duty rate that are necessary in order to proceed with the steps that have been taken to control smoking in a sustainable manner. They have also said that they will hold the rate as per results from the research that is conducted at the time.
