The government has begun reviewing a proposal to reduce cigarette import duties after a recommendation from the World Health Organization (WHO), a move that could eventually lower cigarette prices across the Maldives.
Speaking at a press conference held at the President’s Office to mark World No Tobacco Day, Minister of Homeland Security and Technology Ali Ihusaan announced that discussions will commence among relevant authorities regarding a potential reduction of the cigarette import duty to MVR 4 per stick.
The review comes amid ongoing public concerns over the sharp increase in tobacco prices following tax reforms introduced in late 2024. As part of those measures, the government raised the specific duty on cigarettes from MVR 3.30 to MVR 8 per stick after implementing a nationwide ban on vaping products, resulting in significantly higher retail prices.
Minister Ihusaan acknowledged that the previous tax increase was a difficult decision but said it was implemented based on expert guidance and concerns that former vape users could transition to traditional tobacco products following the ban.
According to the minister, recent WHO research recommends that the Maldives maintain a cigarette-specific duty of MVR 4 per stick by 2026. He noted that the government is giving serious consideration to the recommendation as part of its ongoing policy review.
Ihusaan stressed that President Dr Mohamed Muizzu’s administration remains committed to evidence-based policymaking and is prepared to reassess existing measures when new research supports alternative approaches.
If adopted, the proposed change would reduce the current duty rate by half, potentially easing the financial burden on smokers who have faced steep price increases over the past year.
The minister said consultations with government agencies and other stakeholders will take place before any final decision is reached. Should there be broad agreement, the necessary legislative amendments will be submitted to the People’s Majlis for approval.
The proposal is expected to draw significant public interest, particularly among smokers who have repeatedly called for a review of the current tobacco tax structure.
