Talks underway to cut tobacco duty from MVR eight to MVR four: Ihusaan
Minister of Homeland Security, Labour and Technology Ali Ihusaan Ali Ihusaan stated that the duty on tobacco products was increased to discourage individuals from switching to cigarettes following the ban on vaping. However, the government is currently holding discussions regarding a World Health Organization (WHO) recommendation to reduce the current eight-Rufiyaa duty to four Rufiyaa. The Minister further noted that if a consensus is reached through these deliberations, a legislative amendment will be proposed to implement the change.
Home Minister Ali Ihusaan speaking to press. | Presidents office
Minister of Homeland Security, Labour and Technology Ali Ihusaan has stated that the World Health Organization (WHO) has recommended a reduction in duties on tobacco products, and that discussions are currently underway regarding the matter.
Speaking at a press conference held at the President's Office on Sunday to mark World No Tobacco Day, Minister Ihusaan stated that the government increased the duty on tobacco products in 2024 following expert advice. He noted that the decision was made to preemptively address concerns that individuals might switch to cigarettes following the national ban on vaping.
At that time, we increased the rate to eight Rufiyaa specifically in connection with the ban on vaping. This was done as a proactive measure based on expert advice, anticipating that many individuals who previously used vapes might transition to smoking cigarettes. Nevertheless, adjusting tax rates remains one of the primary tools used by governments in tobacco control and as a means to discourage people from using tobacco products.Minister of Homeland Security, Labour and Technology Ali Ihusaan
Effective November 1, 2024, the government has implemented a significant tax hike on tobacco products, increasing the import duty on cigarettes by 50 percent plus a specific rate of eight Rufiyaa per cigarette. Similar increases have been applied to beedis, which now face a 50 percent duty hike along with an additional eight Rufiyaa per unit. Furthermore, electronic cigarettes and related vaping devices are subject to a 50 percent tax increase, with e-liquid flavors now incurring an additional charge of eight Rufiyaa per milliliter.
Furthermore, the duty on heated tobacco products—tobacco products designed to be used by heating without combustion—has been increased by 50 percent, with an additional levy of MVR eight per stick.
Acknowledging that it was a difficult decision at the time, Minister Ihusaan stated that the World Health Organization (WHO) has recommended reducing the tobacco duty to four Rufiyaa following a formal study. The Minister further noted that discussions are currently underway with all relevant stakeholders regarding the matter. He added that if a consensus is reached, a legislative amendment will be proposed to implement the change.
