MALE’, — The People’s Majlis on Wednesday overwhelmingly approved a government-backed bill to cut the import duty on cigarettes by half, rolling back a major tax hike implemented less than two years ago.
The legislation, which slashes the specific duty per cigarette from 8 Rufiyaa to 4 Rufiyaa, passed the Majlis floor exactly as drafted by the administration. In a striking display of consensus following weeks of fierce partisan debate, 68 lawmakers voted in favour of the bill, with not a single member voting against it.
The bill, introduced on behalf of the government by Komandoo MP Mohamed Ibrahim, had cleared the Committee of the Whole House on Monday without amendments. While several legislators had floated the idea of revisions during preliminary reviews, no formal amendments were ultimately tabled, paving the way for Wednesday’s un-amended passage.
The legislative U-turn comes after a turbulent parliamentary debate marked by heated cross-floor exchanges and mutual allegations of corruption between political factions.
Lawmakers from the ruling People’s National Congress (PNC) defended the policy shift by revisiting the context of the initial tax hike in November 2024, which had seen duties skyrocket from 3.30 Rufiyaa to 8 Rufiyaa. According to PNC members, that dramatic increase was designed to prevent vapers from shifting to cigarettes following a nationwide ban on electronic smoking devices. Subsequent market research, government officials argued, demonstrated that the anticipated surge in cigarette consumption did not materialise.
Opposition Maldivian Democratic Party (MDP) lawmakers challenged the government’s logical consistency, pointing out the apparent contradiction between raising taxes to curb smoking and subsequently cutting them. Responding to the criticism, PNC MP for Baarah, Ibrahim Shujau, insisted that the ruling party’s stance remained consistent with the evolving context of the market and the necessity of adjusting fiscal measures to real-world data.
The administration defended the reduction by citing international guidance, stating that the decision to recalibrate the levy to 4 Rufiyaa aligned with recommendations from the World Health Organization (WHO).