Deputy Speaker calls for tax hike on sugary beverages alongside cigarettes

The Maldives also needs to raise the tax on sugar-sweetened beverages as it increases the tax on cigarettes and other tobacco products, says Deputy Speaker Ahmed Nazim.

The Parliament on Tuesday morning held a preliminary debate on amendments submitted by the government to the Import/Export Act. The amendments seek to increase the tax on cigarettes and other tobacco products, as well as the tax on e-cigarettes and vapes until a planned ban kicks in.

During the debate, Nazim, who represents the Dhiggaru constituency, noted that several countries are now implementing a sugar tax. He said that the Maldives needs to toughen taxation on sugary beverages such as carbonated soft drinks, sports drinks and energy drinks

“Malaysia proposed increasing its sugar tax – the tax on sugar-sweetened beverages - in the budget submitted last week. The UK also has a sugary drinks tax,” he said.

“Instead of focusing solely on tobacco products in our bid to protect the health of our people, we must also toughen taxation on sugary beverages.”

Nazim said the Parliament needs to increase the tax on sugary beverages when it increases the tax on tobacco products.

Nazim also said that there are certain things the government must consider when it raises the tax on cigarettes.

He said that there are risks that cheaper and more harmful brands of cigarettes get imported into the Maldives following the tax hike.

“We must properly enforce regulations and plan ways to curb black market sales and smuggling,” said Nazim.

Nazim said that many people engage in unhealthy lifestyle choices such as smoking cigarettes and consuming tobacco products and then use the public health insurance scheme, Aasandha, as a “safety net” when they get older.

He questioned whether they deserve Aasandha coverage.

“They have no regard for adopting healthy habits, spend most of their life smoking cigarettes, consuming tobacco and drinking sugary beverages such as energy drinks with complete disregard for their health, and then depend on Aasandha and need to be treated by the state when they reach old age,” he said.

The legislative changes will increase the specific rate of import duty for cigarettes and beedi from MVR 3 to MVR 8, and the ad valorem tax on the products by 50 percent, starting November 1.

The government also plans to raise the legal smoking age in the Maldives from 18 to 21 years.

The legislative changes will also see the specific raise of import duty for flavors and chemicals for e-cigarettes and vapes increased to MVR 8 per milliliter, and the ad valorem tax on the products by 50 percent until a ban on vaping kicks in.

Maldives is set to ban the import of devices used for vaping along with spare parts of such devices starting November 15. Meanwhile, the use, possession, production, sale and advertisement of devices used for vaping will be banned starting December 15.

The government has also announced that special measures will be taken to boost the role of law enforcement agencies in preventing smoking in public spaces, and a large-scale national campaign will be launched to help people quit smoking.