- Cigarettes still cheaper in Maldives despite duty hike
- MVR 1.1 billion is spent on cigarettes
- MVR 200 million in revenue
Altering duties is something the government will put great thought into before doing it. This is due to the fact that any altering of a duty will have an effect on the pocket of the common man. You could say doing something like this is playing with fire, however the reactions the public have shown to the proposed increase of duty on cigarettes show that the public is in favor of this increase. This may be due to the difficulties many people feel due to public smoking.
The government has decided to increase excise duty by MVR 1.75 on cigarettes starting next year. There is a duty of MVR 1.25 currently on cigarettes. This is the first time a change is being brought to the price of cigarettes since the last increase of duty in 2014. There will be an increase of MVR 200 million in revenue for the government with this price increase.
The price in Maldives is still low
While the duty on cigarettes are rising, Maldives is still one of the countries where products such as cigarettes are available so cheaply. Statistics from the World Health Organisation show that some countries in Europe where addiction to cigarettes run rampant still have a higher price for cigarettes in comparison to Maldives.
- Price for cigarette pack in UK is MVR 167
- North America, majority of Europe has packs around MVR 148
- Sri Lanka has packs at around MVR 200
The price for cigarettes in UK, a country with a high amount of smokers has packs for around 8.74 pounds (MVR 167). North America and countries like Australia has packs for around 16.11 dollars (MVR 148). Countries like Singapore which many Maldivians see as the example for an ideal country has the pricing at around 13 Singapore dollars (MVR 144) per pack. Even neighboring Sri Lanka has packs costing up to MVR 200.
Cigarette expenditure equal to government income
The revenue predicted in the budget for next year is MVR 1.1 billion. This is equal to the amount Maldivians spend on cigarettes every year. While the Maldives has a tobacco control law, the expenditure on cigarettes rise annually. Statistics released by the Health Protection Agency in regard to the world no smoking day shows that the amount of tobacco brought into the country has increased by 35% in the past 5 years. Last year alone, tobacco costing up to MVR 243 million has been imported to the country.
This is cause enough for an increase to be brought to the duty on cigarettes. An increase in price will cause difficulties in purchase of an item, and escaping from cigarette smoke is surely a wish that every person will share.
