The government has submitted a bill to Parliament seeking to amend the law to reduce the import duty levied on cigarettes.
The bill was presented to the People’s Majlis on behalf of the government by Mohamed Ibrahim, Member of Parliament for Komandoo Constituency.
Under the current Import-Export Act of the Maldives, a duty of USD 0.52 is charged on each cigarette. However, the proposed amendment seeks to reduce that amount by half, lowering the duty to USD 0.26.
The government has also proposed amendments that would exempt nicotine replacement products designed specifically to help people quit tobacco use from import duty. These include nicotine chewing gum, nicotine patches, and similar products.
The amendment to Article 7 of the Act proposes reducing the duty on three categories of tobacco products. In addition to cigarettes, the duty on rolled cigrattes and heated tobacco products - tobacco products designed to be heated rather than burned would also be reduced to USD 0.26. At present, a duty of USD 0.52 is charged on each of these products.
According to the explanatory notes accompanying the bill, the amendment would reduce the import duty revenue projected in this year’s budget. If the changes come into force from 1 July, government revenue is estimated to be USD 13.59 million lower than originally forecast.
The bill states that, if passed by Parliament and ratified by the President, the amendments will come into effect as law. It also provides that the relevant regulations and procedures must be revised and published within 30 days of the law taking effect.