Morocco Debates Alcohol Tax Hike Amid Health and Economic Concerns

During the detailed discussion of the 2024 Finance Bill (PLF) within the upper house, Youssef Aidi, president of the USFP group, stressed that the increase in the TIC on alcoholic beverages will have an impact on the poor strata of society first, as well as repercussions on various sectors, particularly the health sector, reports H24info. To support his argument, he recalled that 3 individuals died in Chefchaouen, 6 in Tetouan and 9 in Ksar Lkbir, "after mixing alcoholic beverages with disinfectant gel". Councilor Mohamed Benfkih, for his part, asked the Minister of Economy and Finance, Nadia Fettah Alaoui, not to subject the sale of alcohol to a license, because Morocco has "a liberal economy and a modern state".

"We must be honest and clear when we legislate [...] The majority consume alcohol, and consumers should not be burdened every time by increases. This would lead them to the black market and cause family and marital problems," he warns. In the same vein as Benfkih, Lahcen Haddad, an Istiqlal councilor and former Minister of Tourism, believes that the increase in the TIC on alcoholic beverages (TIC) risks paving the way for the encouragement of illicit industries and the consumption of adulterated or spoiled and inferior quality alcohol, such as eau-de-vie (Mahia).

He also warned against "social contradictions and hypocrisy" when the issue of the sale of alcohol on the domestic market is addressed. The Istiqlal elected official thus refers to old regulatory provisions, in particular Article 28 of the Order of the Director General of the Royal Cabinet No. 3-177-66 of July 17, 1967 regulating the trade in alcoholic or alcoholized beverages, which still prohibit the consumption and sale of alcohol to Moroccans of Muslim faith. This article stipulates that it is forbidden for any operator of an establishment subject to a license to sell or offer free alcoholic or alcoholized beverages to Muslim Moroccans. The establishment that falls under this provision is punishable by 1 to 6 months’ imprisonment and a fine of 300 to 1,500 dirhams or one of these two penalties only.