Hundreds queue for cigarettes as import duty hiked

Hundreds of people queued up to buy cigarettes before import duties were hiked on a range of goods today.

Block-long queues formed outside tobacco shops The Root and OCC last night, with smokers in what OCC managing director Mohamed Mumthaz described as a “state of panic”.

From today, import duty on tobacco is 200 percent (up from 150 percent) . Some shops have already raised prices from MVR38 (US $2.47) to MVR47 ($3.05) a pack.

Mumthaz believes the public is afraid that big businesses will take advantage of the hike in import duties and hoard cigarettes in order to reduce the supply in the market, so that they can sell at an inflated price.