Former president Mohamed Nasheed states the sharp increase in duty levied on cigarettes makes its illegal trade inevitable, adding that this has been the case in other countries as well.
The doubling of import duties and taxes on cigarettes in November 2024 has led to an increase in smuggling cases, the latest being the theft of cigarettes valued at MVR 13 million from two containers confiscated by the Maldives Customs Service at the Hulhumalé port.
Four people have been arrested in connection with the case, including two prominent local businessmen: Lotus Fihaara owner Ahmed Arif (Aattey) and Apollo Holdings’ CEO Mohamed Waheed (Dhigali).
Amidst the scandal, Nasheed, via a post on his unofficial X account on Wednesday, stated that an increase in the duty levied on cigarettes will lead to a rise in smuggling cases. He underscored that this has been the case in other countries as well.
“The sharp increase in duty levied on cigarettes makes illegal trade inevitable,” he said.
President Dr. Mohamed Muizzu launched a campaign against smoking last year, introducing a ban vapes and e-cigarettes, and doubling import duty and taxes on cigarettes.
 The move doubled the price of the most common cigarette brands from MVR 110 to MVR 240 per pack.
Tobacco importers and distributors raised the prices of cigarettes following this change, with the price of common cigarette brands rising between MVR 240 to MVR 290 per pack, and MVR 2,220 per carton.
However, smuggled cigarettes are sold at a lower rate in the black market – leading to a drop in import duty and other taxes levied on cigarettes.
Notably, in September, authorities stopped an attempt to smuggle out MVR 15 million worth of cigarettes from the commercial port in Addu.