Morocco will see an increase in cigarette prices this year, reports Morocco World News.
Some packs will increase by up to MAD2 ($0.20) while premium brands will have minimal or no increase.
The increase is aimed at narrowing the gap between low-cost and premium cigarettes to create a more balanced market, according to the Moroccan government.
Entry-level brands are the main targets of the increase. Societe Marocaine des Tabacas raised prices of Gauloises and Marquise by MAD1. Philip Morris International increased L&M and Chesterfield prices by MAD2. Japan Tobacco International increased prices of Monte Carlo by MAD2 and LD by MAD1. Camel saw an increase of MAD0.5.
Morocco’s 2025 finance bill introduced measures to boost tax revenues while increasing public spending and investment, with a goal of reducing the budget deficit to 3.5 percent of GDP. In order to achieve this goal, the government plans to raise domestic consumption taxes on products like hard alcohol, beer, and manufactured tobacco. This is projected to bring in MAD657.8 billion, which is a 14.49 percent increase. Tax revenues from cigarettes are expected to be MAD13.7 billion.
The Domestic Consumption Tax’s specific quota will increase to MAD550 while the minimum tax per 1,000 cigarettes will increase to MAD953.