Duty on vapes to be increased by 200 percent; cigarettes by MVR 5

Finance Ministry has proposed to increase the import duty on vapes by 200 percent and cigarettes by MVR 5.

At present, a 25 percent duty is levied on vapes while an MVR 3 duty is levied on cigarettes.

A member of Parliament’s Public Accounts Committee told Sun that the paper submitted to the Committee by the Finance Ministry on Wednesday proposes to increase the duty levied on the two products, harmful to health, starting from December.

The increase in duty levied on vapes and cigarettes would increase their prices.

Speaking at a convening of the Committee on Wednesday, Finance Minister  Minister Dr. Mohamed Shafeeg, underscoring majority of the public is against importing products that a harmful to health, affirmed the government’s intention to increase the duty levied on such products.

“For example, items related to tobacco or items related to vaping. Although we do not ban its import, to further increase the import duty. The point is to discourage the public and citizens from products harmful to their health,” he added.

Maldives currently imports MVR 1.8 billion (USD 400 million) worth of cigarettes on an annual basis. Health Ministry has previously stressed the need to increase import duties to discourage smoking.

Statistics spanning the past three years show that 293,006 vape units worth MVR 28 million were imported in 2021; 283,709 vape units worth MVR 30 million were imported in 2022 and 134,076 vape units worth MVR 22 million were imported 

Vapes were imported by 74 parties including private individuals and companies. However, the market was dominated by five companies.

World Health Organization (WHO) has previously said 150 people die in the Maldives per year, on average, from diseases directly linked to smoking. This accounts for a death every two days.

Meanwhile, 2019’s global youth tobacco survey conducted among school students shows that the percentage of students smoking had increased from 11.2 percent in 2011 to 45.7 percent in 2019.

Notably, Maldives is set to entirely drop duty allowances for conventional and flavored cigarettes, e-cigarettes, sheesha, and e-liquid starting from November which would mean they would be imported after paying the duties levied.