Morocco: Government looking to increase taxes on alcohol
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As part of its 2024 and in search of a formula to mitigate the fallout of the Ukraine war and other ongoing global crises, the Moroccan government is looking to increase taxes on alcoholic beverages. This tax raise concerns the domestic consumption of wine, beer, and spirit drinks, the Morocco World News reported on October 21.
The 2024 finance bill aims to fortify the country's financial landscape, revealing a significant shift in the taxation of alcoholic beverages.
The proposed change comes as Morocco seeks to address pressing economic challenges, including fiscal deficits and increased demands on public resources.
The draft legislation, which is currently under review, intends to increase the domestic consumption tax applied to wine, beer, and spirits. While specific figures have yet to be disclosed, the move is anticipated to lead to higher prices for these alcoholic beverages.
This tax adjustment is expected to generate additional revenue for the state budget, which has been under considerable strain due to the economic impact of the global pandemic and the Russian-Ukrainian War.
Morocco’s treasury expects to collect this year MAD 14.5 billion ($1.3 billion) in taxes on alcohol and cigarettes, indicating an increase of roughly MAD 1 billion ($92 million) compared to last year. According to sources, this increase in state revenues is associated with a noted increase in the number of alcohol consumers in the country.
While alcohol consumption remains a social taboo in Morocco due to religious beliefs, the country is Africa’s second-largest wine exporter and one of the growing consumer markets in the region.
