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Rabat – Tobacco prices in Morocco are set to rise again, with a new adjustment expected to take effect on January 1, 2025.
According to Le360, certain cigarette brands will see price hikes ranging between MAD 1 and MAD 2 ($0.10–$0.19) per pack, as the government moves forward with its progressive taxation plan for the sector.
The decision will be finalized during a meeting of the commission overseeing manufactured tobacco product prices, scheduled for next week. Operating under the Ministry of Finance, this commission meets biannually to regulate tobacco pricing in the country.
This price increase is no surprise to industry insiders, who have been anticipating such adjustments due to changes in Morocco’s tax policy.
The Moroccan government has implemented a phased reform of the domestic consumption tax (TIC) on tobacco products, introduced through the 2022 Finance Law, with increases planned through 2026.
This policy aims to achieve two main objectives: boosting state revenues and narrowing the price gap between low-cost and premium cigarettes.
Read Also: Morocco Announces Cigarette Price Hike for 2024 as Tax Reforms Take Effect
According to the 2025 Finance Bill (No. 60.24), taxes on tobacco, alcohol, and related products are expected to generate over MAD 16.4 billion ($1.58 billion) in revenue.
This figure forms part of broader fiscal measures designed to increase public spending and investment while reducing the budget deficit to 3.5% of GDP—a 0.5-point drop from the previous year.
Tax projections for 2025 include 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.
By 2026, the specific TIC quota for cigarettes is set to reach MAD 550 ($52.90) per 1,000 cigarettes, up from MAD 100 ($9.62) in 2022. Similarly, the minimum tax per 1,000 cigarettes will rise from MAD 710.2 ($68.30) to MAD 953 ($91.70) over the same period, reflecting the government’s commitment to both fiscal sustainability and public health objectives.
Beyond fiscal goals, the move is also seen as a step toward public health advocacy. Higher tobacco prices, driven by increased taxes, could discourage consumption and promote healthier lifestyles, particularly among lower-income groups, where price sensitivity is higher.
The successive price hikes over recent years reflect Morocco’s dual strategy of balancing economic interests with social responsibility.
