Plans to reduce cigarette prices: Strong evidence pointing to a misguided move

The Maldives government is considering reducing customs duty on cigarettes from MVR 8 to MVR 4, effectively cutting retail prices by 50%, as stated by Home Minister Ali Ihusaan, who attributed the proposal to a WHO recommendation, though WHO has not confirmed. This reversal of aggressive anti-tobacco measures from 2024—including a vaping ban and duty increase—led to a surge in illicit trade and a 95% drop in legal import revenue. Critics argue the move is misguided, citing tobacco's price inelasticity and negative public health impacts, especially on youth.

The Maldives government is considering reducing customs duty on cigarettes from MVR 8 to MVR 4, effectively cutting retail prices by 50%, as stated by Home Minister Ali Ihusaan, who attributed the proposal to a WHO recommendation, though WHO has not confirmed. This reversal of aggressive anti-tobacco measures from 2024—including a vaping ban and duty increase—led to a surge in illicit trade and a 95% drop in legal import revenue. Critics argue the move is misguided, citing tobacco's price inelasticity and negative public health impacts, especially on youth.

The Maldives government is considering reducing customs duty on cigarettes from MVR 8 to MVR 4, effectively cutting retail prices by 50%, as stated by Home Minister Ali Ihusaan, who attributed the proposal to a WHO recommendation, though WHO has not confirmed. This reversal of aggressive anti-tobacco measures from 2024—including a vaping ban and duty increase—led to a surge in illicit trade and a 95% drop in legal import revenue. Critics argue the move is misguided, citing tobacco's price inelasticity and negative public health impacts, especially on youth.

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