The Parliament approved an increase in excise duty on cigarettes and vape products effective Thursday.

The Government also passed a bill to amend the Import and Export Act of 2002, which aims to adjust the excise duty on electronic cigarettes, vaping equipment, and related components. This includes an increase in duty on tobacco heating products from 25 to 200 percent. The excise duty on traditional cigarettes and bidis has been raised from 25 to 50 percent, equating to an increase of MVR 8 per cigarette. Additionally, the excise duty on flavors and chemicals in electronic cigarettes and other tobacco products has been increased to 50 percent.

For heated tobacco products, the excise duty has also been raised to 50 percent, while the duty on other tobacco products has surged to 200 percent. The bill was passed with support from 71 members, while eight opposed it.

The act will take effect once ratified and published by the President. The government anticipates generating MVR 180.3 million in revenue this year from these changes, with an estimated MVR 1,058.7 million from import duties on cigarettes alone in the current fiscal year.

President Abdulla Yameen Abdul Gayoom has announced a ban on the sale of vaping materials and individual components in the Maldives, effective November 15, 2024. Mohamed Muizzu made this decision on May 14.

In a post on X, the President stated that authorities have been directed to implement all necessary measures to prohibit the use, manufacture, sale, advertisement, and free distribution of vaping materials in the Maldives starting December 15, 2024. Furthermore, the President plans to amend the law to set the minimum trading age for tobacco products at 21 years, aiming to keep youth away from smoking. The proposed amendments will be tabled in Parliament.