Morocco Refuses to Increase Taxes on Alcohol to Protect Public Health

Rabat – Morocco’s majority leaders decided to maintain the same domestic consumption tax on alcoholic beverages in 2023.

The decision aimed to “protect the health of consumers and stop adulterated alcoholic beverages or contraband, which could harm consumers,” according to sources cited by the Moroccan daily newspaper Assabah.

The sources recalled the recent alcohol poisoning case in Ksar El Kebir, which led to the death of 19 people after the consumption of adulterated alcohol.

In 2023, Morocco’s treasury expects to collect MAD 14.5 billion ($1.3 billion) in taxes on alcohol and cigarettes, resulting in an increase of roughly MAD 1 billion ($92 million) more than last year. According to Assabah’s sources, the increase in state revenues is associated with the increase in the number of alcohol consumers in the country.

Breaking down alcohol-related tax revenues based on beverage type, Assabah stated that Moroccan tax revenues from beer and other alcoholic beverages are expected to reach MAD 1.1 billion ($101 million) and MAD 859 billion ($79 million) in 2023, respectively, up from MAD 814 million ($75 million) and MAD 630 million ($58 million) in 2022.

In August, Moroccan journalist Rachid Niny stated that national alcohol consumption is expected to see an annual growth of 3-6% with the French Flag Speciale beer remaining the best-selling beer in the North African country.

While alcohol consumption remains a social taboo in Morocco due to religious beliefs, the country is Africa’s second-largest wine exporter and one of the growing consumer markets in the region.

The country imports a variety of alcoholic beverages including beers, wines, and whiskeys. The number of alcohol import deals is expected to increase over the coming years, particularly with distilleries based in the UK. In October, Morocco lifted 49% of its tariffs on UK spirits.

British Department for International Trade (DIT) argued that the tariffs were “mistakenly imposed” on a variety of UK spirits, adding that removing import barriers in Angola, Argentina, and Tunisia would unlock export opportunities worth £100 million (MAD 1.2 billion) for British spirit brands.