Hiking tobacco tariffs to discourage smoking called into question
A record 200 percent import duty hike in 2012 failed to reduce demand and the number of cigarettes imported to the Maldives increased to 497 million in 2016 from 460 million the previous year despite a further hike in April 2015 that jacked up prices to MVR48 a pack.
19 Feb 2017, 9:00 AM
The effectiveness of hiking tobacco tariffs to discourage smoking was called into question Thursday when a parliamentary committee consulted customs and health officials about a proposed import duty hike for cigarettes.
Commencing its review of the government-sponsored amendments to the import-export law, the economic affairs committee invited senior officials from the Maldives Customs Service, the Health Protection Agency, and the Tobacco Control Board to share their views.
Customs officials told MPs that the number of cigarettes imported to the Maldives increased to 497 million in 2016 from 460 million the previous year despite an import duty hike in April 2015 that jacked up prices from MVR38 (US $2.47) to MVR48 (US$3.11) a pack.
The government’s proposal to hike import duty from MVR1.25 to MVR2 per cigarette would increase the price to about MVR70 (US$4.5) a pack.
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