Parliament Tuesday accepted the government proposed bill seeking a significant increase in excise duty on energy drinks and cigarettes.
The government proposed amendment to the Import export law was accepted with 51 lawmakers voting in favour while nine MPs were against.
Government had proposed to raise excise duty on each cigarette by MVR1.75 which would likely elevate the price of a pack from the current MVR47 to over MVR50.
Government hopes the duty hike on cigarettes would yield a revenue of an estimated MVR200 million next year.
In addition, the 20 percent excise duty increase on fizzy drinks would boost government revenue by MVR9 billion.
The government lawmaker who submitted the bill to Parliament stated that this was part of an effort by the government to discourage people from substances that were harmful to their health.
While all lawmakers generally agreed to raising of the duty on the products, some opposition MPs questioned the real motive of the government behind this sudden hike in duties.
Opposition lawmakers alleged that the duty hike was a ploy designed to boost government revenue rather than public health.
