Morocco to Hike Cigarette Prices in 2022 as Part of Tax Overhaul

This new revision planned in the gradual overhaul of the domestic consumption tax (TIC) on tobacco will come into effect in the 2022 finance bill, reports l’Économiste.

According to the newspaper, which has analyzed the details of this draft law, there are significant disparities in the levels of taxation on the different types of cigarettes sold in Morocco. This is reflected in the retail prices of cigarettes, which are still affordable for most consumers.

Thus, the announced revision of the taxation methods will make it possible to both preserve the interests of the Treasury and reduce the substantial price gap between the so-called low-cost cigarettes and the premium brands, the newspaper notes, adding that it could also curb purchases, thus reducing consumption.

According to the new taxation scheme established by the 2022 Finance Act, the specific portion of the TIC should increase from 100 dirhams in 2022 to 550 dirhams in 2026. The minimum levy should, for its part, rise from 710.2 dirhams in 2022 to 953 dirhams in 2026.