New, higher cigarette prices took effect in Morocco from yesterday after the imposition of an increase in the domestic consumption tax on some cigarette brands, according to a story in Morocco World News.
Under Article 5 of the 2019 Finance Bill, the minimum tax rate was increased from MAD567 to MAD630 per 1,000 cigarettes, while the minimum tax burden was increased from 53.6 percent to 58 percent.
Morocco collected MAD10.48 billion from its domestic consumption tax last year, up from MAD9.86 billion in 2016, according to the country’s customs administration.
And in October, the Economics Minister Mohamed Benchaaboun said that the latest increase in taxes on tobacco would generate additional revenue in 2019 estimated at MAD1.2 billion.
The 2019 Finance Bill included also a clause raising the domestic consumption taxes on shisha tobacco from MAD350 to MAD450 per kg.
The Government was given some tobacco-industry support for its decision to increase the tax on cigarettes.
However, some tobacco companies reportedly suggested that the 2019 Finance Bill would help support the illegal trade in tobacco products.