Maldives President Approves New Tax Bill To Raise E-cigarette Import Tax To 200%

Maldives President approves new tax bill to raise e-cigarette import tax to 200%

The President of Maldives has approved an amendment to the taxation of tobacco and electronic cigarettes, which will impose an import tax of up to 200% on electronic cigarettes, vaping equipment, and heated tobacco products, effective from November 1, 2024.

According to Raajje's report on November 3rd, Maldives President Dr. Mohamed Muizzu has approved amendments to the taxation of cigarettes and electronic cigarettes.

In mid October this year, the parliament passed a proposal to tax electronic cigarettes and cigarettes with 65 votes in support.

The President of Maldives has approved the 19th amendment to the Export Import Act, which significantly changes the import taxes on tobacco and electronic cigarettes. The amendment changes the tobacco product import regulations in Section 5 of the Export and Import Law, covering processed tobacco, tobacco substitutes, electronic cigarettes, heated tobacco products and their components. In addition, the content of Chapter 24 in Section 7 has also been adjusted.

According to the new regulations, all products under the categories of general and processed tobacco products will be subject to a 200% tariff, except for certain specific items. Flavoring chemicals, heated tobacco products, and consumables for cigarettes, Beedi (Indian hand rolled cigarettes), and electronic cigarettes will be subject to a 50% tariff, with a MVR of 8 rufia per unit or milliliter ($0.52).

The President also revealed that Chapter 85 of Section 7, which deals with amendments to electronic machinery, equipment, and components, will impose a 200% import tax on electronic cigarettes, misting equipment, and heated tobacco products. Other important amendments include that all relevant rules and regulations need to be formulated or updated and published in the government gazette within 30 days after the amendment comes into effect. This amendment will officially come into effect on November 1, 2024.

Previously, the president announced on the social platform "X" a ban on the import of electronic cigarette devices and their components, which will take effect on November 15, 2024. Starting from December 15, 2024, the use, possession, production, sale, promotion, and free distribution of electronic cigarette devices in the Maldives will be prohibited.