The Maldives government has initiated formal discussions to reduce the import duty on cigarettes by half, reversing a substantial tax hike implemented late last year. The move is aimed at addressing the unintended economic and social consequences of the current tariff structure.

Speaking at a press conference held at the President’s Office, Home Minister Ali Ihsan confirmed that the government is consulting with relevant stakeholders to reconsider the tax. In November 2024, the duty on a single cigarette was raised from MVR 3.30 to MVR 8.00.

Minister Ihsan noted that since the tax hike, there has been a significant surge in the use of hand-rolled tobacco (bidi) and an alarming increase in illegal cigarette smuggling across the country. He further highlighted that a study by the World Health Organization (WHO) recommended a duty of MVR 4.00 per cigarette as a more sustainable measure.

The proposed adjustment would effectively slash the current duty by 50%. The Minister emphasized that a final recommendation will be submitted to the People’s Majlis only after a consensus is reached among all relevant authorities and stakeholders.