Rabat – After the 2019 Finance Bill stipulated an increase in the domestic consumption tax on certain cigarette brands, the government said that new prices of cigarettes take effect on January 1.
Marlboro Red Beyond and Marlboro Gold Beyond packs will be sold for MAD 35 instead of MAD 32. Price of all other cigarettes of the same brand Marlboro increased by MAD 2.
Marquise Medium and Marquise Classic, the most widely-consumed cigarettes on the market, will be sold for MAD 21.5 instead of MAD 20.
Other cigarettes brands such as “Casa” will be sold at MAD 20 instead of MAD 16, “Maghreb” for MAD 18, “Olympic KS” for MAD 20, and “More” for 18.
Read Also: Morocco’s 2019 Finance Bill to Raise Tax on Cigarettes
The Moroccan Company of Tobacco (SMT) agreed to support government’s decision to increase tax on cigarettes.
However, some tobacco companies in Morocco reportedly doubted the seriousness of the 2019 Finance Bill analysis, which, according to them, will aid in creating a market for smuggled tobacco.
According to Article 5 of the 2019 Finance Bill, the minimum tax rate will increase from MAD 567 to MAD 630 per 1,000 cigarettes, while the minimum tax burden will increase from 53.6 percent to 58 percent.
Morocco received MAD 10.48 billion from the domestic consumption tax in 2017, up from MAD 9.86 billion in 2016, according to customs administration.
In October, Minister of Economy Mohamed Benchaaboun stated that the bill’s increase of taxes on tobacco consumption will generate additional revenue, estimated at MAD 1.2 billion in 2019.
The 2019 Finance Bill also included raising domestic consumption taxes on shisha tobacco from MAD 350 to MAD 450 per kilogram.
