Market prices for tobacco products have begun to decline following a reduction in import duties.
President Mohamed Muizzu ratified the amendment to lower tobacco duties last week, reversing a previous decision to hike prices less than two years after the initial increase was implemented.
Under the newly amended Export-Import Act, tobacco prices are expected to drop by approximately 50 percent compared to previous rates. These changes are already becoming visible in the local market.
Among the items affected is heated tobacco, which has seen a significant price drop. A packet that previously retailed for MVR 245 has now fallen to MVR 140 following the duty reduction.
The government stated that this policy shift aims to curb the prevalence of counterfeit cigarettes on the black market and aligns with recommendations from the World Health Organization (WHO).
