Parliament passes import duty hike on cigarettes and vape

Parliament, on Thursday, passed amendments submitted by the government which seeks to double the import duty on cigarettes and vape as decided by President Dr. Mohamed Muizzu.

The amendments were passed with the votes of the 71 MPs with Just eight MPs voted against them.

The amendments were proposed to the Import/Export Act and Goods and Service Tax Act which seek to increase the tax on cigarettes and other tobacco products, as well as the tax on e-cigarettes and vapes until a planned ban kicks in. 

They include increasing the duty on flavors and chemicals used in smoking devices by 50 percent and raising the price to MVR 8 per milliliter. A similar increase is proposed to the duty levied on heated tobacco products. The amendment further states the ad valorem tax on cigarettes and beedi will be increased by 50 percent, or charged MVR 8 per unit.

Before the amendments were passed at Thursday’s sitting, Parliament’s Whole House Committee added and approved another provision to the amendment on Wednesday: a 50 percent increase of the duty levied on heated tobacco products and charging MVR 8 per stick.

The amendments will only come into force once ratified by the President.

Revenue earned from tobacco products is expected to see a significant increase with these changes with the state expected to earn MVR 180.3 million this year alone.

Notably, President Muizzu announced his decision to ban the import and sale of vape in the Maldives on October 14^th.

The President, in a post on X, said he had instructed to ban the import of vaping devices and parts of such devices starting from November 15^th and instructed all relevant authorities to undertake all efforts necessary to ban the use, possession, production, sale, advertisement and free distribution of vapes starting from December 15^th.

On October 15^th, President Muizzu announced his decision to double the import duty on cigarettes and beedi – a measure he said is designed to discourage smoking.