Morocco Raises Minimum Cigarette Prices to 22 Dirhams in New Tobacco Policy
Morocco has adopted a new pricing grid for cigarettes, in order to regulate product accessibility and generate some tax revenue.
The new cigarette pricing policy came into effect on January 1, 2021. It consists of encouraging tobacco distributors to apply a minimum price of 22 DH to regulate access to cigarettes, reports L’Économiste. This increase is the result of the examination of the price structure requested by the homologation commission. It is a question of determining the production costs, the profit margin and the tax challenge of each tobacco brand.
All products below 22 DH must be increased to reach this minimum price. Only one reference was maintained at 19 dirhams at the request of the distributor. No price increase for two references in the premium of two different distributors. Conversely, all other references have increased their prices.
Morocco has defined this new pricing policy following the recommendations of the World Health Organization to fight against smoking by acting on the price.
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