The Ministry of Health has announced a new licensing requirement for the trade of tobacco products in the Maldives, under the recently amended Tobacco Control Act. This new rule came into force last Friday and marks a significant step towards regulating the sale and distribution of tobacco products throughout the country.
Licensing Mandate
Under the new law, any individual or entity involved in importing, exporting, or selling tobacco products, whether in bulk or retail, must obtain a valid license issued by the Ministry of Health. This requirement is in addition to obtaining a regular business permit.
Regulation Development
The Ministry of Health will draft specific regulations for the issuance of these licenses within 60 days of the law’s enforcement. Businesses must secure their licenses within this timeframe once the regulations are finalized. Until then, it will be illegal to conduct tobacco trade without a valid license.
Prohibited Trade Without Permits
Any tobacco trade conducted without a valid license will be strictly prohibited. Businesses found violating this rule will face penalties.
Penalties for Violations
The amended act outlines strict penalties for non-compliance:
- License Revocation: The Ministry of Health can revoke licenses for businesses that violate the new law.
- Fines:
- General violations will result in fines ranging from MVR 1,000 to MVR 1,000,000.
- For offenses like unauthorized trade, smuggling, or failing to disclose information during import/export, the fine will be ten times the total payable taxes and fees.
- Example Penalty Calculation: If the total taxes and fees owed amount to MVR 1,000, the fine for violations will be MVR 10,000.
Impact and Next Steps
The goal of this new regulation is to:
- Strengthen Control Over the Tobacco Trade: By requiring businesses to obtain a valid license, the Ministry of Health can better monitor tobacco sales and distribution.
- Ensure Compliance with Packaging and Labeling Regulations: Businesses must adhere to strict packaging and labeling standards.
- Curb Unauthorized Trade and Smuggling: With tighter regulations and penalties, the hope is to reduce illegal trade and smuggling of tobacco products in the Maldives.
Businesses involved in the tobacco trade are urged to prepare for the new licensing requirements. Staying informed about the Ministry of Health’s upcoming regulations will be essential to comply with the new law.
