Cigarette Prices Surge in Morocco as Government Raises Tobacco Taxes

During a press conference held in Rabat, the CEO justified this price by the increase in taxes. "We are not in a very high price evolution. It is true that it is a shock for all Moroccans, but this is a state decision. As we are a civic-minded company, we respect this decision."

According to Antoine Dutheil, taxation in Morocco has a major impact on the price of tobacco. The liberalization of the sector has allowed the company to take over the locally produced tobacco, and to support local "tobacco growers".

However, the alignment of the taxation on blond and brown tobaccos has led to a drop in the consumption of the latter over the past two years, he explained, adding that "this has forced to reduce the purchase of brown tobacco, and to reduce the purchase of tobacco produced in Morocco".

"Anecdotally, we have 7 years of stock due to the drop in sales of brown tobacco linked to the price increase," said Dutheil.