Denver – Morocco’s government has announced plans to revise the current national tobacco tax framework as part of the 2022 national finance bill.
According to a supporting document to the new finance bill, the government will adjust the current tobacco tax model to address differences in cigarette taxation rates throughout the country.
The taxation adjustment would help provide the country’s treasury with additional revenue, while also reducing the price difference between low-cost and “premium” cigarettes.
The progressive taxation rate would steadily increase the amount of taxes tobacco consumers are required to pay between 2022 and 2026. Per the new policy, tobacco vendors would charge a minimum of MAD 710.2 ($78.59) from 2022 to MAD 953 (105.46) in 2026 per 1,000 cigarettes.
According to cigarette manufacturers, the subsequent price change will be much more pronounced in the low-cost cigarette varieties. These products have typically made their sales by providing a cheap alternative to the more well-known premium cigarette brands. The low-cost cigarette manufacturers traditionally undercut prices by utilizing inferior quality tobacco in their cigarettes.
Tobacco industry operators estimate the price of premium cigarettes to increase to an average of 40 MAD per pack by the year 2026.
The new tax plan will also raise the price of “e-cigarettes.” E-cigarette juices not containing nicotine will see taxes raised to 5 MAD per 10 ML bottle, while nicotine-filled juices would be taxed at 10 MAD per 10 ML bottle.
Morocco’s government has said that its intentions are to comply with WHO standards regarding electronic cigarettes. The international health body recommended more restrictive regulation on electronic cigarettes, specifically by aligning the taxation standards with those of traditional tobacco products.
