Economic Minister Mohamed Saeed clarified that tobacco products and cigarettes will not be exempt from duties under the newly implemented China-Maldives Free Trade Agreement (FTA). This announcement came in response to a question posed by North Galolhu MP Mohamed Ibrahim (Kudoo) regarding whether these items would be duty-free under the agreement.
In a written response, Minister Saeed explained that while the FTA between the two nations aims to foster trade, tobacco products, including cigarettes, would still be subject to the standard duties imposed on imports. He further emphasized that the revenue generated from these duties will depend on the volume of tobacco products imported into the Maldives from China.
“The duty levied on tobacco products is based on the price of the imported goods,” Saeed stated. “The exact numbers will only be determined when the transaction is completed, as this concerns future transactions.”
The minister also highlighted that the terms of the FTA allow for disclosure only based on agreements made between the two countries, ensuring transparency once transactions take place.
As the China-Maldives FTA officially came into effect in January 2025, this clarification reassures the public that tobacco products will continue to be taxed as they are for imports from other countries. This decision aligns with the government’s approach to maintaining consistent policies on tobacco-related imports despite the new trade agreement with China.
The announcement further underscores the Maldives’ commitment to adhering to established regulations while enhancing trade opportunities through agreements such as the FTA with China.
