Morocco to Raise Alcohol Taxes, Prices Set to Surge from February 15

As part of the mobilization of additional revenue for the state budget, the prices of wines, beers and spirits will increase from February 15, reports Maghreb-Intelligence, adding that "the most significant increases concern strong alcohols such as gin, vodka and whisky with an increase ranging from 50 to 100 dirhams per bottle". A domestic consumption tax (TIC) of 30,000 dirhams per hectolitre, i.e. a TIC of 300 dirhams per litre of pure alcohol, is imposed on alcohols intended for the preparation or contained in brandies, liqueurs, aperitifs, vermouths, preserved fruits in alcohol, liqueur wines, mistelles, alcohol confectionery and other spirits, in the Finance Act 2024, promulgated and in force since January 1. The TIC on beers is now set at 1500 DH per hectolitre, while that on wines is 2000 DH per hectolitre of wines, i.e. 20 dirhams per litre. The government of Aziz Akhannouch is counting on the TIC on alcoholic beverages to replenish the state’s coffers. It expects to collect more than 62 million dirhams as license fees on drinking establishments.

Last year, alcohol brought in a lot of money for the state. In its quarterly report on the execution of the 2023 Finance Act, the Ministry of Economy and Finance stated that taxes on alcoholic beverages had generated revenue of 867.4 MDH for the State Treasury as of June 2023. In detail, taxes on wines generated 400 MDH, while taxes on beers generated 467.4 MDH, i.e. respective realization rates of 47% and 42% of the finance law forecasts.