One carton in two days; price hike leads to drop in cigarette sales

Store owners report that with the recent hike in the price cigarettes, it now takes twice the time to sell off a single carton of cigarettes.

Earlier this month, the Maldives enacted legislature increasing the specific rate of import duty on cigarettes and beedi from MVR 3 to MVR 8, and the ad valorem tax on the products by 50 percent.

Tobacco importers and distributors raised the prices of cigarettes following this change, with the price of common cigarette brands rising between MVR 240 to MVR 290 per pack, and MVR 2,240 per carton.

Many of the store owners who spoke to Sun on Sunday said that they previously sold one or two cartons per day. But now, it takes two days to sell off a carton of cigarettes.

Some of the store owners said that other types of tobacco products, such as rolling tobacco, are selling better with the price change.

Maldives has also enacted legislature which banned the import of e-cigarettes, vaping devices and spare parts on November 15.

Meanwhile, the use, possession, production, sale, distribution and advertisement of e-cigarettes and vaping devices will be banned starting December 15.

The government projects the tax hikes on tobacco products will result in an additional MVR 1.05 billion in tax revenue next year.