The amendment to the Export Import Act, which increases duty on cigarettes and energy drinks, has been forwarded to the Parliament House Committee for further deliberation.

51 MPs voted in favor of sending the motion for further deliberation, while nine MPs had voted against. Three MPs had not cast their votes either for or against the motion. The MPs had raised their hands for a physical vote as the electronic system had failed.

The motion was proposed on behalf of the Government by Kudahuvadhoo Constituency MP and Government coalition partner MDA MP Ahmed Amir. The motion proposes a duty of MVR 4.6 per liter of soft and energy drinks and MVR 2 per cigarette.

Currently, a 15 percent duty is levied on soft and energy drinks with a MVR 1.25 duty on every cigarette. The existing duty on imported water of 15 percent remains unchanged.

MP Amir said an increase of duties levied was proposed to deter the public from using a substance that was harmful to health.

While speaking in the Parliament’s Budget Committee, Finance Minister Ahmed Munawwar last year had requested the Parliament for an increase in duties on energy drinks and cigarettes.

With the proposed changes in duties, current price of MVR 47 per cigarette pack will rise to over MVR 60 per pack.

The Government estimates that the change in duties will earn the Government MVR 200 million in revenues, with a projected additional MVR 9 million coming in from duties on energy drinks.