When inquired if the World Health Organization (WHO) recommended the Maldivian government to lower cigarette duties, no response has been provided.
Following Homeland Security Minister Ali Ihusaan's public statement that the WHO suggested reducing tariffs on tobacco goods, Sun reached out to the organization a week prior and is still awaiting a reply.
On June 1, Sun sent an email to the WHO Representative in the Maldives, Payden, requesting clarification. The organization was requested to verify if it had provided the guidance that the government asserts it has received. To date, no response has been given.
The issue emerged after Minister Ihusaan mentioned that the government was contemplating overturning its choice to raise tobacco duty from MVR 3.50 to MVR 8, and instead cutting it down to MVR 4.
During a press conference on May 31, Ihusaan announced that the cigarette duty increase to MVR 8 was implemented to deter vape users from moving to cigarettes after the vape prohibition. He mentioned that the WHO, following a study, had advised lowering the duty to MVR 4.
“We are contemplating this rate.” We will address it with all pertinent agencies and stakeholders. He stated, “If there's consensus, the government will present the proposal to Parliament.”
He mentioned that the government would depend on guidance from key financial entities and technical specialists in making such a choice.
Following the duty hike in November of last year, the cost of a pack of cigarettes has gone up from MVR 110 to MVR 250.
Certain traders claim this has resulted in a drop in cigarette sales, while worries have increased regarding the surge in smuggled cigarettes, homemade cigarettes, and rolling tobacco.