3 weeks ago
Maldives Cuts Cigarette Duty to Curb Illicit Tobacco Market
The Maldives is a country made of many islands.
It charges a tax, called a duty, on cigarettes brought into the country.
The duty used to be 8 Maldivian Rufiyaa per pack.
The government raised taxes to help keep people healthy.
But the higher taxes caused a problem.
More people started buying illegal cigarettes instead of legal ones.
That made the government lose money.
So the government recently lowered the duty to 4 Rufiyaa per pack.
Experts say the best answer is balanced taxes and stopping illegal cigarette sellers.
The World Health Organization gave the Maldives an award for its anti-smoking efforts.
The Maldives reduced the cigarette import duty from MVR 8 to MVR 4 per pack.
Authorities reported that previous tax increases fuelled the growth of the illicit tobacco market.
The illicit trade eroded legal sales and reduced government revenues.
Experts say taxation must be balanced with stronger action against illicit trade.
The WHO awarded the Maldives its 2024 World No Tobacco Day Award for tobacco-control measures including higher taxation.
- Who
- The Maldives' government and tax authorities, with advice from experts; the World Health Organization recognized the country's tobacco-control work.
- What
- Reduction of the cigarette import duty from MVR 8 to MVR 4 per pack to combat the illicit tobacco market.
- Where
- Maldives.
- When
- Recently, following a review prompted by the growth of the illicit tobacco trade.
- Why
- Previous tax increases were reported to have fuelled the illicit tobacco market, eroding legal sales and government revenues.
Public Health Focus (Higher Taxes)
Market and Revenue Focus (Lower Taxes)
Cigarette tax levels
Public Health Focus (Higher Taxes)
Higher tobacco taxes are a recognized tobacco-control measure, and the WHO's 2024 World No Tobacco Day Award recognized the Maldives for adopting them.
Market and Revenue Focus (Lower Taxes)
Tax increases fuelled the illicit tobacco market and eroded legal sales and government revenue, prompting the import duty cut from MVR 8 to MVR 4.
Dealing with the illicit trade
Public Health Focus (Higher Taxes)
Protect public-health gains by keeping tax pressure on cigarettes while adding stronger enforcement against illegal sellers.
Market and Revenue Focus (Lower Taxes)
Lower the duty so legal cigarettes compete better with smuggled products, restoring legal sales and government revenue.
Key facts
- Country
- Maldives
- Previous cigarette import duty
- MVR 8 per pack
- New cigarette import duty
- MVR 4 per pack
- Reason for change
- Curb illicit tobacco trade that eroded legal sales and revenues
- WHO recognition
- 2024 World No Tobacco Day Award
- Recognition basis
- Strengthened tobacco-control measures, including higher taxation
- Expert guidance
- Balanced taxation and stronger action against illicit trade
Sources
Related news
Delhi GST Department Seizes Imported Cigarettes Worth Rs 65 Lakh
India’s Tobacco Tax Overhaul Leaves Bidis Behind, Authors Say
Banned Imported Cigarettes Worth Rs 1 Crore Seized In Delhi
US Customs Seizes Counterfeit Camel Cigarettes Worth $404,842
India Slashes Windfall Tax on Petrol, Diesel and Jet Fuel
Tamil Nadu Marks World No Tobacco Day with Awareness and Enforcement
World No Tobacco Day: Highlighting Dangers and Encouraging Quitting
