No Duty Relief on Tobacco Imports from China Under Maldives-China FTA, Says Economic Minister

Economic Minister Mohamed Saeed has confirmed that tobacco products imported from China will not receive duty concessions under the Free Trade Agreement (FTA) between the Maldives and China.

Speaking at today’s parliamentary session, the minister responded to four written questions submitted by MP Mohamed Ibrahim of Galolhu North constituency. The MP had inquired whether duty would be imposed on tobacco products and cigarettes imported under the FTA, its potential impact on state revenue, and measures to mitigate any revenue shortfalls.

Minister Saeed clarified that tobacco products are subject to duty under the agreement and will be taxed at the same rate as cigarettes imported from other countries. He further stated that the state’s revenue from duties on tobacco products will depend on the volume of imports from China.

The Maldives-China Free Trade Agreement was initially established during the presidency of former President Abdulla Yameen. However, its implementation was suspended under the previous administration. The current government resumed its enforcement on January 1st of this year.

Under the agreement, 91% of goods imported from China are duty-free, while all types of fish and seafood exported from the Maldives to China—including fresh and frozen yellowfin tuna, grouper, tuna species, canned fish, dried fish, and salted fish—also benefit from duty exemptions.