Morocco Raises Prices on Budget Cigarette Brands

This pricing policy is part of the reform of the Domestic Consumption Tax (TIC) on cigarettes, aimed at reducing the price gap between value and premium cigarettes and "depolarizing" the market, reports Le360.

The Moroccan Tobacco Company (SMT) has increased the price of the Gauloises and Marquise brands by 1 dirham. Philip Morris International (PMI) has increased the price of L&M and Chesterfield by 2 dirhams. Japan Tobacco International (JTI) has increased the price of Monte Carlo by 2 dirhams and that of LD by 1 dirham.

The prices of the premium brands Marlboro (PMI) and Winston (JTI) remain unchanged. Only the price of Camel (JTI) has increased by 50 cents.

This increase was expected, given the rise in tobacco taxation. The 2022 Finance Act has programmed a reform of the TIC, establishing a progressive taxation scheme for the 2022-2026 period.

This revision aims to "preserve the interests of the Treasury (by ensuring additional revenue) and reduce the substantial price gap between low-cost cigarettes and premium brands."