A government bill aiming to reduce the import duty on cigarettes by 50% was presented to Parliament on Wednesday, following nearly two hours of debate, where opposition members mocked the administration’s change in position, while government officials defended the choice.

In 2024, President Dr. Mohamed Muizzu’s government raised the import duty on cigarettes and beedi from MVR 3 to MVR 8 per stick, and increased the ad valorem tax from 50 percent to 100 percent.

An amendment to the Import-Export Act, backed by Komandoo MP Mohamed Ibrahim, suggests lowering the import duty on cigarettes, beedi, and heated tobacco products from MVR 8 to MVR 4, along with decreasing the ad valorem tax from 100 percent to 30 percent.

The legislation additionally suggests waiving import taxes on items that assist in quitting smoking, including nicotine gum and patches.

The legislation was accepted into Parliament with a unanimous vote of 49 on Wednesday afternoon.

The voting occurred after nine legislators from the primary opposition Maldivian Democratic Party (MDP) were removed from the Parliament chambers for demonstrating regarding the committee distribution of the legislature.

The legislation has now been forwarded to the Whole House Committee for evaluation.

The voting occurred following a preliminary discussion that lasted one hour and 45 minutes, where government and opposition lawmakers exchanged remarks.

MDP legislators characterized the amendment as a result of the government rushing decisions without adequate research, while members of the ruling People’s National Congress (PNC) supported the government's actions.

The 2024 decision to increase the import duty on cigarettes was part of extensive reforms by President Muizzu’s government to tackle smoking, which also included a ban on vapes and e-cigarettes, as well as a prohibition on smoking for those born after 2007.

Maldives received global acclaim for its anti-smoking initiatives, highlighted by a World No-Tobacco Day Special Recognition Award from the World Health Organization (WHO) for President Muizzu, along with an Integrity Award from the Global Center for Good Governance in Tobacco Control (GGTC) for the country.

Although the measures have gained international acknowledgment, the vape ban and the subsequent increase in import duty on cigarettes have resulted in an illicit market where vapes and lower-cost cigarette brands are being smuggled into and sold in the Maldives. This has led to the loss of millions in Rufiyaa from import revenue.

President Muizzu’s government persisted in justifying the tax increase, asserting that public health significantly surpassed any economic setback.

During a press briefing on May 31, Homeland Security Minister Ali Ihusan stated that the choice to increase cigarette taxes in 2024 had been a “challenging” decision, and the administration was contemplating reducing the import duty to MVR 4 per stick – a measure he noted was suggested by the World Health Organization (WHO).

The WHO has not issued any formal statement concerning the allegation.

When asked about the choice at a press briefing on June 1, President Muizzu affirmed he wasn’t reversing his firm position on tobacco products, but was implementing “essential modifications.”