President Muizzu Halves Cigarette Import Duty Amid New Tobacco Control Measures

President Dr Mohamed Muizzu has ratified an amendment to the Export-Import Act, reducing the specific import duty on cigarettes from USD 0.52 to USD 0.26 per stick. The legislation, which was passed by the Parliament and gazetted on July 2, entered into force immediately. Under the new regulations, a 30 percent ad-valorem duty will be applied in addition to the revised specific rate. In a move to support smoking cessation, the government has also exempted nicotine-replacement products, including nicotine patches and chewing gum, from all import duties. This decision marks a significant reversal of a November 2024 policy that had increased the duty from USD 0.21 to USD 0.52. The administration acknowledged that the reduction will lead to a decrease in projected import-duty revenue for the national budget. According to government statements, the adjustment follows guidance from the World Health Organization (WHO) to balance tobacco affordability with a robust anti-tobacco framework. The government maintains that lowering the duty does not undermine its long-term public health goals but rather complements a suite of existing restrictions. In recent years, the Maldives has aggressively pursued tobacco control. These efforts include the implementation of a generational ban on tobacco products and a strict prohibition on the import and sale of e-cigarettes. Furthermore, the state launched a comprehensive national tobacco-control campaign on June 27, following an initial announcement on May 31. Relevant ministries have been mandated to update all associated rules and regulations within 30 days to reflect the legal changes. The administration stressed that the broader objective remains the total eradication of tobacco use to protect the health of the Maldivian population.