Statistics published by Finance Ministry show that import duty collected in 2025 fell short of the projected amount by 33 percent at the end of the year.
The government projected to collect MVR 4.6 billion in import duty during 2025.
However, the statistics published by Finance Ministry paint a different picture. In this regard, import duty collected by the end of the year stood at MVR 3.08 billion, accounting for just 67 percent of the projected amount. This means the import revenue collected in 2025 fell short of the projected amount by 33 percent.
Notably, import duty has been concerningly low since the beginning of last year. When questioned by a journalist during a press conference regarding the matter, Economic Minister Mohamed Saeed failed to provide a reason, citing he “does not know” and needs to review the numbers.
However, the Minister assured that the drop in import duty revenue is not correlated to the free trade agreement executed with China.
Some lawmakers from the Parliament’s Public Accounts Committee have linked the drop in import duty revenue to the hike on the duty levied on cigarettes. The rise in the prices of cigarettes to MVR 240 per box has created a ‘black market’ where smuggled cigarettes are sold at lower prices. 
In a later comment, Minister Saeed said the health benefits from the hiked cigarette prices far outweigh the drop in import duty.
While concerns exist regarding the drop in important revenue, there are also concerns regarding the failure to implement projects.
Former president Abdulla Yameen Abdul Gayyoom has stated that the drop in import duty is not solely because of cigarettes, but also due to the failure to implement any economic projects.
According to Finance Ministry’s statistics, only MVR 8.6 billion out of the MVR 12 billion budget for projects was utilized.