The government has submitted legislation to Parliament seeking to reduce import duties on cigarettes and other tobacco products while removing import taxes on nicotine replacement products used to help people quit smoking.
The bill was presented to the People's Majlis by Mohamed Ibrahim, Member of Parliament for Komandoo Constituency, on behalf of the government.
Under the current Import-Export Act, an import duty of USD 0.52 is charged on each cigarette brought into the Maldives. The proposed amendment would reduce that amount by 50 percent, lowering the duty to USD 0.26 per cigarette.
The changes would not be limited to cigarettes alone. The amendment also proposes reducing the import duty on rolled cigarettes and heated tobacco products—devices that heat tobacco rather than burn it—to the same rate of USD 0.26 per unit. At present, all three categories are subject to a duty of USD 0.52.
In addition, the government is seeking to exempt nicotine replacement products from import duty altogether. The proposed exemption would apply to products specifically intended to support smoking cessation, including nicotine chewing gum, nicotine patches, and similar alternatives designed to help tobacco users quit.
According to the explanatory memorandum accompanying the bill, the amendments are intended to support healthier lifestyle choices by making smoking cessation products more accessible while revising the tax structure applied to tobacco-related products.
However, the proposal is expected to have an impact on state revenue. Government estimates indicate that if the amendments take effect from July 1, import duty collections would fall by approximately USD 13.59 million compared to projections included in this year's national budget.
The bill states that the amendments will become law once approved by Parliament and ratified by the President. It also requires the relevant regulations and administrative procedures to be revised and published within 30 days of the law coming into force.
If enacted, the changes would represent a significant shift in the Maldives' tobacco taxation framework, affecting both government revenue and the local tobacco market while providing tax incentives for products aimed at helping people stop smoking.
