Morocco’s Tobacco Tax Revenue Exceeds Forecast, Reaches 11.34 Billion Dirhams in 2019
The tobacco market generated 11.34 billion DH at the end of 2019, compared to a forecast of 11.05 billion DH in the 2019 Finance Act; this represents a slight additional profit margin of 300 million DH.
The customs administration generated more tax revenue than it had hoped for last year. However, with this slight rebound, the revenue recorded last year (11.34 billion DH) is clearly down compared to that recorded in 2018 (15.1 billion). L’Économiste notes that the contraction of the tobacco market had no negative impact on the revenue from the domestic consumption tax (TIC).
The government had revised the taxation, in particular the increase in the TIC and the alignment of the rate of brown tobacco on blond tobacco. The purpose of this revision is not only to maintain the treasury’s revenue, but also to work for the reduction or renunciation of cigarette consumption in the kingdom. This objective is more or less achieved. Witness the slight contraction that the market has experienced, without impact on tax revenues.
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