Morocco Raises Electricity Taxes, Impacting Consumer Costs

"As part of the 2024 Finance Act, the public authorities have decided to make changes to the VAT rates applied to water, sewerage and electricity tariffs," said Lydec, the delegated manager of the distribution of drinking water and electricity in Casablanca, in a note published on Sunday and reported by Le Matin.

These tax measures, recorded in the General Tax Code, have been in effect since January 1, 2024. They concern the VAT exemption, which was 7%, for all sales operations of water for domestic use, as well as sewerage services and water meter rental operations; the increase in the VAT rate for electricity, from 14% to 16% (18% in 2025 and 20% in 2026); the increase in the VAT rate for the rental of the electricity meter to 11% (15% in 2025 and 20% in 2026).

For non-domestic uses (commercial and professional activities, industrial, administrative, hotels, Turkish baths, etc.), a VAT rate of 10% instead of 7% will apply to the sale of drinking water as well as sewerage services and water meter rental operations. All these measures will not have "any impact, on a transitional basis, on the TTC selling prices of electrical energy," it is assured.