Morocco’s Beverage Industry Fights Sugar Tax, Claims Unfair Targeting

The application of the TIC on industrial products containing sugar is having a hard time passing. In the eyes of industrialists, the TIC does not respect a constitutional principle, which is that of tax equity. They point out that the TIC focuses on their products alone while products from other sectors such as pastry, confectionery, chocolate, dairy products, cafes and restaurants are exempt. By opting for an increase in the TIC, the government and Parliament say they want to fight obesity and diabetes. In other words, to preserve the health of consumers. An health argument that is refuted by the industrialists.

In order to dismantle this argument, the Federation spent 2 million DH to commission a study from a specialized firm, the main lines of which were recently presented to Parliament during a study day on the taxation of sugar-based products, reports L’Économiste. The bulk of the sugar is consumed in Morocco outside industrial products, unlike France (85%), Mexico (73%) and South Africa (62%), the study report indicates. Consequently, the taxation of sugary products will have no effect, as 75% of the sugar consumed escapes the TIC. The study shows that it is the industrialists and consumers who will be penalized and that there would be no reduction in sugar consumption. "None have been able to demonstrate or measure the effectiveness of the tax in the fight against non-communicable diseases related to food," says the consulting firm.

"If the government’s objective is to protect the consumer against the harmful effects of sugar, it must go about it differently, because agri-food products represent only 25% of sugar consumption. Indeed, 75% of sugar is consumed through homemade products. In the benchmark countries, the proportion is reversed," explains an operator. "If the government really wants to reduce consumption, it should enact a law setting the maximum sugar rate for each type of product with a penalty in case of exceeding. The legal approach could be accompanied by an awareness-raising strategy on the harmful effects of sugar and the need to engage in physical activity," suggests another operator.