Morocco’s Alcohol Tax Revenue Soars 66% as Consumption Rises Despite Higher Prices

Despite the increase in the tax on alcoholic beverages, their consumption has increased in Morocco, due to the influx of foreign tourists and the sharp increase in consumption by the Moroccan middle class. The consumption tax on wines, beers and spirits has increased from 50 to 65%, which has contributed to boosting tax revenues. The domestic consumption tax (TIC), on the other hand, has increased for wines (+76%), from 850 to 1500 Dhs/hl, beers (+74%), from 1150 to 2000 Dhs/hl, and pure ethyl alcohols (+67%), from 18,000 Dhs to 30,000 Dhs/hl.

The differentiated increase in taxes on alcoholic beverages is likely to lead consumers to review their consumption habits and turn to cheaper drinks, which would promote smuggling. For example, the price of a widely consumed beer will increase by 2.20 dirhams per unit for the 25 cl bottle and 2.80 Dhs for the 33 cl bottle. A price increase that will lead to a drop in demand, as consumers’ purchasing power has been considerably weakened in recent years, but also health risks due to the consumption of smuggled products.