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Join on Telegram Rabat – The Moroccan government is banking on revenue taxes on alcohol and cigarettes to surpass MAD 16.4 billion ($1.58 billion), based on data from the Finance Bill No.60.24 for 2025.
This year’s finance bill introduces measures to boost tax revenues while increasing public spending and investment. The aim is to reduce the budget deficit to 3.5% of GDP, a 0.5 percentage point decrease compared to the previous year.
To achieve these goals, the government plans to raise domestic consumption taxes on products like hard alcohol, beer and manufactured tobacco, projecting revenues of MAD 657.8 billion ($63.47 billion), marking a 14.49% increase.
Expected tax revenues amount to MAD 1.19 billion ($114.91 million) from hard alcohol, MAD 1.55 billion ($149.76 million) from beer, and MAD 13.7 billion ($1.32 billion) from cigarettes.
A similar strategy was applied in the 2024 bill, where higher taxes on alcoholic beverages were proposed to address fiscal deficits and growing demands on public resources, while relying on stable tax income to guarantee sustainable financing and minimize fluctuations in tax collection.
The 2025 Finance Bill also anticipates revenue from taxes on other domestic products, with MAD 854 million ($82.42 million) expected from soda and soft drinks, and MAD 60.5 million ($5.84 million) from sugary products. Additionally, the bill also projects an uptick in government income from the tax on energy products – like natural gas – totaling around MAD 19.56 billion ($1.89 billion).
Notably, revenues from tobacco are expected to reach MAD 13.7 billion ($1.32 billion), whereas revenues from the OCP are projected at just 7.5 billion ($735 million). As tax revenues from tobacco are nearly double those of the OCP, this reflects the heavy influence that tobacco consumption has on Morocco’s society and economy.
The 2025 bill focuses on four priorities: strengthening social cohesion, boosting economic sovereignty, ensuring sustainable public finances, and laying the ground for future generations. It also continues social protection programs, including direct aid for nearly four million households.
On Friday, at a Council of Ministers meeting chaired by King Mohammed VI at the Royal Palace in Rabat, Minister of Economy and Finance Nadia Fettah Alaoui discussed key elements of the new bill and outlined the government’s budget strategy in the face of ongoing geopolitical and climate challenges.
Among these, the government plans to increase the investment fund from MAD 245 billion ($23.63 billion) in 2022 to MAD 335 billion ($32.32 billion) in 2024.
In terms of fiscal policy, the government is focused on restoring financial balance, reducing budget deficits, and bolstering economic resilience. The bill aims for a 4.6% growth rate and inflation limited to 2% by 2025, as Morocco strives to maintain macroeconomic stability.
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