Morocco Considers Steep Tax Hike on High-End Smartphones, Sparking Debate

Rather than increasing this tax, majority parliamentary deputies recommend maintaining it at 2.5% for the most affordable smartphones, costing less than 2,000 dirhams, and a gradual increase for other ranges of devices, i.e. a 17.5% increase for smartphones valued between 2,000 and 8,000 dirhams, and 30% for devices valued at 8,000 dirhams or more.

A 30% increase on imported smartphones would affect low-income consumers, explained the deputies of the National Rally of Independents (RNI), the Party of Authenticity and Modernity (PAM), the Istiqlal Party (PI), and the Constitutional Union-Democratic and Social Movement (UC-MDS) before the Economy and Finance Committee.

This tax measure is criticized by authorized phone distributors who believe it will benefit smuggling. The increase in customs duties will affect the final price of smartphones, which will see a 40% increase, warns Omar El Boury, a telecommunications expert and representative of a group of players in the mobile telephony distribution world.

The most vulnerable social classes will be the most affected by this measure, which will slow the development of the digital sector in Morocco, analyzes the expert, recalling that this measure is the third targeting these products in 5 years. After the study of these amendments to the 2024 PLF by the Economy and Finance Committee, the deputies will proceed to the vote on the first part of the 2024 PLF.