Parliament Approves Bill to Halve Import Duty on Cigarettes and Tobacco

The Parliamentary Committee of the Whole House has unanimously approved a government-backed amendment to the Export Import Act, effectively cutting the excise duty on cigarettes and various tobacco products by half. Proposed by Komandoo MP Mohamed Ibrahim, the amendment will reduce the current levy from USD 0.52 to USD 0.26 per stick. This reduction also extends to beedis and heated tobacco products, which will see their duties lowered from USD 0.52 to USD 0.26 each. Beyond tobacco consumption, the legislative change aims to support those attempting to quit smoking. The amendment expands duty-free status to include nicotine-replacement therapies, such as nicotine patches and chewing gum, which will now be exempt from import duties. While the measure may lower costs for consumers, it comes with a clear fiscal cost to the state. According to the government’s fiscal note accompanying the bill, the projected import-duty revenue for the current fiscal year is expected to drop by approximately USD 1.36 million if the amendments take effect on July 1. The proposal was debated and passed without modification by the Committee of the Whole House, with all 69 members present voting in favor of the change.