The government has submitted a bill to the People's Majlis proposing to significantly reduce the import duty on cigarettes, with ruling party lawmakers arguing that the previous high tax rates are no longer necessary.

Ruling People's National Congress (PNC) MPs stated that recent research confirms vape users did not transition to smoking traditional cigarettes following the country's comprehensive vape ban. Because the "generational tobacco ban"—which prohibits tobacco access for anyone born in 2007 or later—is being successfully implemented, lawmakers maintained that cigarette prices can now be safely adjusted.

The new amendment to the Export-Import Act seeks to slash the specific import duty on cigarettes and bidis from 8 MVR down to 4 MVR per stick. Additionally, it proposes lowering the ad valorem tax rate on these products from 50% to 30%. This marks a shift from the steep penalizing tax hikes introduced by the same administration in late 2024, which had raised the ad valorem rate from 25% to 50% alongside outlawing the import of electronic cigarettes, vapes, and customized vaping accessories.

During today's parliamentary session, opposition Maldivian Democratic Party (MDP) MPs heavily criticized the government's sudden policy reversal. Defending the bill, PNC Parliamentary Group Leader Ibrahim Falah and Baarah MP Ibrahim Shujau countered that the initial 2024 tax increase was a preemptive measure to stop vape users from migrating to cigarettes. Since subsequent studies show that this migration did not occur, they argued that the amendment represents a successful policy evolution rather than a step backward.