Geela dodges question on cigarette price reduction: ‘Not prepared to answer’

Health Minister Geela Ali stated on Tuesday that she would provide a response at a later date to a question regarding the government's decision to reduce cigarette prices after having implemented a substantial increase earlier in its tenure.

The question was raised by opposition MDP’s parliamentary group’s deputy leader, Vaikaradhoo MP Hussain Ziyad (Fittey) during the ministerial questioning session on Tuesday’s parliamentary sitting. Although the session was primarily focused on the establishment of a mental health hospital and the expansion of related services, Ziyad used the opportunity to seek clarification on the government's recent policy shift concerning tobacco taxation.

"I did not come prepared to answer that specific question today; therefore, I will provide a detailed response to the honorable member at a later time," Minister Geela replied.

The query comes amid growing debate over a government-backed proposal submitted on Monday to amend existing legislation and reduce the import duty on cigarettes to MVR 4 per stick. The proposal marks a significant reversal from the government's November 2024 decision to increase the duty from MVR 3.50 to MVR 8 per stick. The proposed reduction has drawn criticism from various parties, particularly public health professionals, who have expressed concern over the potential implications of the policy change.

The proposed amendment to the Export-Import Act was submitted to Parliament on behalf of the government by ruling PNC’s Komandoo MP Mohamed Ibrahim.

According to the government, the amendment is aimed at supporting smoking cessation efforts and creating economic incentives that encourage healthier lifestyle choices among the population. Under the proposal, import duties on cigarettes, beedis and heated tobacco products would be set at MVR 4 per unit, in addition to an ad valorem tax rate of 30 percent. The amendment also seeks to improve the availability and affordability of smoking cessation products, including nicotine gum and nicotine patches.

Following the substantial tax increase introduced in November 2024, the retail price of a pack of cigarettes rose sharply from approximately MVR 110 to MVR 250.

While critics argued that the higher tax rate resulted in a decline in import duty revenue, the government initially defended the measure, maintaining that the long-term public health benefits outweighed any short-term reduction in state revenue.

However, speaking at a press conference held on May 31 to commemorate World No Tobacco Day, Minister of Homeland Security Ali Ihusaan described the increase to MVR 8 per stick as a "difficult decision." He stated that the government was considering reducing the increase by 50 percent, claiming the adjustment was being made in accordance with World Health Organization (WHO)’s recommendations.

To date, the WHO has not issued any official statement confirming whether such a recommendation was provided.

Meanwhile, during a press briefing held earlier this month, President Dr. Mohamed Muizzu rejected assertions that the government was reversing its tobacco taxation policy, insisting that it was not making a "U-turn" but rather implementing adjustments considered necessary under the prevailing circumstances.