Thousands of smokers could soon see a reduction in cigarette prices as the government begins considering a significant cut to tobacco import duties following recommendations from the World Health Organization.
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 said the government has decided to initiate discussions among relevant authorities on reducing the cigarette import duty to MVR 4 per stick.
The announcement comes after widespread public frustration over the sharp increase in tobacco taxes introduced in late 2024. At the time, the government doubled the specific duty on cigarettes from MVR 3.30 to MVR 8.00 per stick following the nationwide ban on vaping products, a move that significantly increased cigarette prices across the country.
Ihusaan acknowledged that the decision to raise the duty to MVR 8 had been challenging, but said it was implemented based on expert advice and concerns that many vape users could switch to conventional cigarettes after the ban.
Now, with new research available, the government is reviewing its position. According to the minister, a WHO study recommends a specific cigarette duty rate of MVR 4 for the Maldives by 2026.
“This is a rate we are currently taking into serious consideration,” Ihusaan said.
The minister emphasized that President Dr. Mohamed Muizzu’s administration remains committed to making policy decisions based on research and evidence. He noted that the government is prepared to reassess previous measures when new findings suggest a better approach.
If implemented, the proposed reduction would effectively halve the current MVR 8 duty rate, offering financial relief to smokers who have faced steep price increases over the past year.
Ihusaan said extensive consultations will take place with relevant government agencies and stakeholders before any final decision is made. Should consensus be reached, the government will submit the necessary amendments to the People’s Majlis for approval.
The announcement is likely to be welcomed by many smokers who have repeatedly called for a review of the current tax regime, while also highlighting the government’s willingness to listen to public concerns and adapt policies in line with updated international recommendations.
