Dossier: Escalating Cigarette and Vape Smuggling in the Maldives: The 241 Committee Report and the Hulhumalé Port Heist

Dossier: Escalating Cigarette and Vape Smuggling in the Maldives: The 241 Committee Report and the Hulhumalé Port Heist

Executive Summary

In October 2025, the Maldives faces a severe crisis in tobacco product smuggling, exacerbated by a recent duty increase on cigarettes and a nationwide vape ban. On October 27, 2025, Deputy Speaker Ahmed Nazim presented the Parliament’s 241 Committee (National Security Services) report, revealing that smuggled cigarettes now outnumber legally imported ones, leading to substantial revenue losses for the state.

The report highlights systemic failures in customs enforcement and recommends urgent reforms. A parallel high-profile incident—the theft of 13.6 million smuggled cigarettes from Hulhumalé port—has resulted in nine arrests, including businessmen, customs officials, and port staff, with investigations ongoing as of October 27, 2025.

This dossier compiles verified facts from official reports, court proceedings, and enforcement actions, underscoring the economic and security implications.

Background:

Cigarette Duty Increase and Vape Ban

• The Maldives government raised the import duty on cigarettes to MVR 240 per pack in late 2024, aiming to curb tobacco consumption and boost revenue.
• A comprehensive ban on vaping devices and related products took effect on November 15, 2024, prohibiting all imports and sales to protect public health.
• These policies, enacted in good faith, have inadvertently fuelled a smuggling surge, with illicit tobacco products now dominating the market.

Parliamentary Inquiry:

The 241 Committee Report – On October 27, 2025, Deputy Speaker Ahmed Nazim, who led the inquiry, presented the 241 Committee’s report to Parliament, focusing on cigarette thefts and unauthorized vape imports.

• Key findings:
  • Smuggling of cigarettes and vapes has “increased drastically” since the duty hike and ban, with smuggled volumes exceeding legal imports for both products.
  • Nazim stated: “There are more smuggled cigarettes than cigarettes imported with duty. The same is true of vape. Vape is available. There are social media accounts selling it.”
  • The report attributes revenue shortfalls to policy changes, noting that expected duties fail to reach state coffers due to evasion through customs.
  • A related committee meeting on the Hulhumalé port theft was postponed on October 17, 2025, to avoid interfering with police investigations.

The Hulhumalé Port Theft Incident

• On April 26, 2025, Maldives Customs seized two 40-foot containers at Hulhumalé Sea Cargo Terminal, containing 1,360 cases (13.6 million sticks) of cigarettes disguised as plywood shipments for Saudi Arabia’s Bin Laden Group, a contractor at MACL.

Estimated value:

• MVR 122 million in evaded import duties; street value approximately MVR 122 million for the seized brands.
• The containers were placed in Maldives Ports Limited (MPL) custody pending investigation and referral to the Prosecutor General’s Office.
• Theft discovery: On October 8, 2025, authorities found the containers had been swapped with fakes, with CCTV footage tampered to conceal the operation. A boat was used to transport the stolen cargo.
• A senior official received a threatening message from a local number on October 8, warning against opening the containers, prompting immediate port inspection by Home Minister Ali Ihusan.

Arrests and Ongoing Investigations

• As of October 27, 2025, nine suspects are in custody, charged with theft, smuggling facilitation, and related offenses.
• Key arrests include:

• Travel bans issued on 12 additional individuals; six MPL staff suspended.
• Court proceedings: On October 21, 2025, sufficient evidence linked Muaz Ali to the heist, justifying extended remand. The case involves potential money laundering charges.

Recent Enforcement Actions

• On October 19, 2025, Customs incinerated 3,183,040 cigarettes (199 cases) seized in anti-smuggling operations at K. Dhoonidhoo incineration site, part of broader efforts amid the duty-driven surge.

Economic Impact

• Projected revenue from duties:
  • Over MVR 100 million lost in the port heist alone; overall state losses in millions due to widespread evasion.
  • Nazim emphasized: “This is directly related to revenue. People are not getting their tax money and others are getting it,” highlighting corruption and security gaps at ports.

Recommendations and Outlook

• The 241 Committee urges immediate Customs reforms to “close the doors” on smuggling, including enhanced surveillance and inter-agency coordination.
• Nazim stressed full implementation of recommendations to restore revenue and public trust.
• Ongoing probes by police, Customs, and Parliament indicate potential for further arrests and policy adjustments. As of October 27, 2025, the crisis persists, with social media sales of vapes underscoring enforcement challenges.