President ratifies duty hikes on beverages and tobacco
President has ratified the bill on increasing duties for cigarettes, energy drinks, and soft drinks.
Customs officials speaking at the Parliament's Economic Review Committee
President Abdulla Yameen has on Thursday ratified the bill increasing duties on energy drinks, soft drinks, and tobacco.
The bill, passed by parliament and put forth for ratification on Wednesday, imposes an additional MVR 20 on every pack of cigarettes (25 percent tax on each cigarette) and MVR 8 on energy and soft drinks.
When pro-government MP Ahmed Amir proposed the bill in parliament, it had only allocated MVR 4.60 to be levied on every liter of energy or soft drinks. This amount was increased to MVR 33.64 by the committee that reviewed the bill.
Upon the bill’s ratification, and Thursday’s publication in the gazette, the duties are now in place.
The Health Protection Agency (HPA) and the Customs Service, and the Tobacco Control Board were summoned to review the duty hikes during the review period, where the HPA noted was a stark lack in funds and effort dedicated towards raising awareness about the risks of smoking.
However, the Customs said that it generates an annual revenue of MVR 622 million, from duties placed on tobacco import alone.
Read More: Pro-government MPs against using duty revenues for public awareness
