Morocco’s 2019 Finance Bill to Raise Tax on Cigarettes

Rabat- The tax increase will affect the most widely-consumed cigarettes on the market, Marlboro and Marquise. Marlboro packs will be sold for MAD 40 instead of 33, and Marquise for MAD 21 instead of 19.

Minister of Economy and Finance Mohamed Benchaaboun explained the tax hike in a press conference Monday at the ministry’s headquarters in Rabat.

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.

Last month, Benchaaboun stated that the bill’s increasing taxes on tobacco consumption will generate additional revenue estimated at MAD 1.2 billion in 2019.