Parliament has passed a government bill to reduce import duties on selected tobacco products, with unanimous support from both the government and opposition.
The amendment lowers the import duty on cigarettes and bidis from MVR 8 to MVR 4, while reducing the ad valorem duty on cigarettes from 50% to 30%. Import duties on heated tobacco products have also been reduced.
The bill also removes import duties on nicotine chewing gum and nicotine patches, aiming to make smoking cessation products more affordable.
During the debate, MPs said the previous tax increase had pushed cigarette prices higher, encouraging some young people to turn to cheaper alternatives. They said the changes are expected to reduce the price of a pack of cigarettes to around MVR 130.
The legislation will take effect after it is ratified by the President, with the relevant regulations to be updated within 30 days.
