2024 Budget: Impact of Cigarette Price Increase in Morocco on Revenue and Consumption

2023-12-21 20:30:00

An increase of 1 to 2 dirhams on the price of cigarettes from January 1, 2024 is planned, as part of a 2024 budget aimed at increasing revenues without new direct taxes. While a packet currently costs an average of 35 dirhams, this increase is part of a broader policy aimed at reducing consumption, but it also fuels the thriving black market.

Read: Morocco: cigarettes will cost more

The increase in tobacco prices is one of the tax measures put in place by the government to, it is said, discourage consumption. However, previous increases appear to have had little effect on reducing consumption, or even the opposite effect. Some argue that this policy accentuates the precariousness of smokers, while others ask that we focus on prevention and the ban on tobacco . Despite these differences, many agree that cigarette smuggling will continue inexorably.

The tobacco tax remains an important source of revenue for the state, with a forecast of 12.5 billion dirhams in revenue for 2023, an increase of 5.82% compared to 2022.

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