Morocco Raising Tobacco Prices Under New Tax Reform

Morocco will increase the prices of manufactured tobacco products from January 1, 2026, under a tax reform aimed at boosting state revenues. The changes were announced in a December 30 circular from the Ministry of Economy and Finance, following a ministerial decree published in the Official Bulletin on December 29. Most cigarette brands will rise by MAD 1–2 ($0.11 – $0.22) per pack, while prices of cigars, heated tobacco and other products will also increase. The decree updates official retail prices and revises the tax base for the ad valorem component of the internal consumption tax (TIC).

The measures are part of a phased tobacco tax reform introduced under the 2022 Finance Law for the 2022–2026 period. The government aims to generate an additional MAD 2.6 billion ($286 million) in tobacco-related tax revenue for 2026.