Cigarette Prices in Maldives Soar After Import Duty Doubles

In a move aimed at curbing tobacco use, the Maldives has seen cigarette prices skyrocket after doubling the import duty on tobacco products. Less than a week after the legislative amendment, which raised both the specific and ad valorem tax on cigarettes and other tobacco products, prices have surged in retail outlets across the country.

The legislative change, submitted by the government, was ratified by President Dr. Mohamed Muizzu on October 31 and implemented immediately. It raised the specific rate of import duty on cigarettes and beedi from MVR 3 to MVR 8, alongside a 50 percent increase in the ad valorem tax on these products. The increase has already led to a substantial hike in cigarette prices, with some brands now retailing as high as MVR 250 per pack—more than double the previous price.

Local importers and distributor have responded to the new taxes by raising their prices. The price of a carton has increased from MVR 995 to MVR 2,240, reflecting the new duties. Retail shops that previously sold a pack of cigarettes for approximately MVR 110 are now pricing them between MVR 240 and MVR 250.

Supply issues are also emerging, with several shops reporting stock shortages and difficulties replenishing due to the immediate impact of the tax hikes.

The new tax regulations also extend to e-cigarettes and vaping products. The import duty on flavors and chemicals for vaping has risen to MVR 8 per milliliter, and each stick used in heated tobacco products is now taxed at MVR 8. This, coupled with an ad valorem tax increase of 50 percent, has further elevated the cost of these products. The government has announced an impending ban on the importation of vaping devices and parts effective November 15, with a total ban on their usage, sale, and advertisement set for December 15.

In addition to tax measures, the Maldivian government has signaled its intent to intensify efforts to limit public smoking. Special measures will be implemented to support law enforcement agencies in preventing smoking in public areas, and a nationwide anti-smoking campaign is set to launch soon to encourage smoking cessation.

As the Maldives takes significant steps toward a tobacco-free future, smokers are feeling the pinch of increased prices and heightened regulation on tobacco-related products.