A proposal to cut the Maldives’ cigarette import duty from MVR 8 to MVR 4 ($0.52 to $0.26) per cigarette sparked heated debate in Parliament, highlighting divisions over the impact of tobacco taxation on public health and illicit trade. The government-backed bill would reverse a 2024 duty increase introduced after concerns that a vape ban could drive smokers toward cigarettes.
Ruling PNC lawmakers defended the original tax hike as a public health measure, while opposition MDP members argued that higher duties have fueled cigarette smuggling and reduced customs revenues. Opposition lawmakers claimed the tax increase helped create a growing black market, with alleged state revenue losses reaching MVR 2 billion ($130 million). Supporters of the duty reduction also argued that previous tax increases failed to curb tobacco use and instead shifted demand toward illicit products.
