Saeed: Tobacco products not exempt from duty under China-Maldives FTA

Economic Minister Mohamed Saeed states tobacco products and cigarettes cannot be imported to the Maldives under the Free Trade Agreement (FTA) executed between Maldives and China.

North Galolhu MP Mohamed Ibrahim (Kudoo) inquired from the Minister whether duty will be levied on tobacco products and cigarettes imported to the Maldives under the China-Maldives FTA.

The Minister, in a written response, clarified that duty would be levied on tobacco products and cigarettes imported to the Maldives under the China-Maldives FTA, adding that the revenue the state will earn from the duty levied on tobacco products and cigarettes imported from China depends on the volume of these items imported.

He detailed that the duty levied on products imported from China is based on the price of the imported product.

“The exact numbers can only be established when the transaction is complete, as the question posed by the MP pertains to the transaction that will take place in the future. Agreements or treaties executed between two countries can only be disclosed based on terms agreed upon between the two countries,” he said.

He affirmed that tobacco products and cigarettes are not eligible for duty exemption under the China-Maldives FTA, and the duty will be applied at the same rate as tobacco products and cigarettes imported from other countries.

China-Maldives FTA came into effect from January 2025 onward.

The FTA with China was signed in December 2014 during former president Abdulla Yameen Abdul Gayoom’s administration after two years of negotiations. The agreement received parliamentary approval three years later, in November 2017.

The agreement was not implemented during former president Ibrahim Mohamed Solih’s administration. 

According to the current administration, FTA would benefit small and medium enterprises most.