Opposition Maldivian Democratic Party (MDP) MPs alleged during today’s parliamentary debate that the government’s proposal to amend the Import-Export Act—effectively slashing cigarette prices by 50 percent—comes only after officials have profited from corruption fuelled by the previous price hikes.
The government’s amendment seeks to reduce the import duty on cigarettes from 50 percent to 30 percent, while cutting the specific duty per cigarette to MVR four. This adjustment represents a 50 percent reduction in the specific duty and a 40 percent cut in the remaining duty, halving the total tax burden on cigarettes.
During the debate, MDP lawmakers accused the administration of initially raising cigarette prices without proper research to facilitate illicit gains. Hanimaadhoo MP Abdul Ghafoor Moosa claimed the government was behind the creation of a tobacco black market.
"They hiked the prices to create a market for theft. Fifty 40-foot containers were smuggled into this country. That was the true purpose of the price hike. This government has colluded to siphon off MVR 2 billion from Customs revenue," Ghafoor charged.
Galolhu South MP Meekail Naseem attributed the need to reverse such decisions to a lack of parliamentary oversight and accountability.
"One afternoon, they just decided to hike tobacco prices. When a major public health shift or a national transformation is decided over a dinner table conversation in a single night, this is the result of such policy-making," Meekail said.
Kendhoo MP Maaroof Zakir stated that the administration’s policies led to a surge in illicit cigarettes and forced young people toward hand-rolled tobacco.
"The intention was to squeeze the Maldivian people and deplete the public treasury by inflating cigarette prices. Smokers were forced toward unsafe alternatives and hand-rolled tobacco. The true damage will be evident once researched," Mauroof said.
The bill mandates that regulations be updated within 30 days of its passage, suggesting cigarette prices will drop shortly after the law is enacted. Vaikaradhoo MP Hussain Ziyad characterized the move as a political maneuver ahead of the 2028 elections.
"If the goal is to secure 2028, lowering cigarette prices alone won't do it. The dollar crisis must be addressed. Without the fundamental qualities of integrity and justice in a leader, there is no reason to consider another term," Ziyad remarked.
Hulhumale' South MP Ahmed Shamheed highlighted that the black market triggered by the price hikes resulted in a massive loss of state revenue. He claimed that Customs lost MVR 1.5 billion in duty revenue in 2025 alone.
