Morocco: a 30% VAT on luxury products?

In her amendments to the 2026 finance bill, the parliamentarian is asking to increase the VAT applicable to luxury products, including cars priced over 600,000 dirhams, yachts and pleasure craft, as well as jewelry and watches worth over 50,000 dirhams. According to the deputy, a tax on luxury products would partially offset the drop in tax revenue related to the exemption of essential products.

The official has also proposed the creation of a "special contribution for the preservation of water resources", applicable to certain crops with high groundwater consumption, particularly in areas classified as being in a situation of severe or extreme water stress. She is asking for the development of a list of the crops and areas concerned, in consultation with institutional and professional stakeholders. The amount of the contribution would be calculated based on the cultivated area (per hectare).

These revenues would be paid into a special fund intended to finance the technical and financial support of farmers in their transition to alternative and sustainable crops. The objective, according to the deputy, is to direct agricultural investments towards water-efficient productions, while limiting the crops that deplete the water tables.

The parliamentarian also called for the exemption of VAT on the first tranche of water and electricity consumption for domestic use, the so-called "social tranche", arguing that taxing these vital and essential services would only increase the burden on low-income households.