2023-12-30 19:13:29
More bad news for smokers. The price of cigarette packs is expected to increase on January 1, 2024, following the increase in the related domestic consumption tax (TIC), introduced in the 2024 finance law.
This price increase follows recent meetings of members of the commission for approval of the price of manufactured tobacco products, which validated the new prices which take effect from New Year’s Day.
This commission, placed under the supervision of the Ministry of Finance, meets every six months to set the price of tobacco sales in Morocco. As expected, the price increase will vary from 1 to 2 dirhams per pack of cigarettes, depending on the brand.
Remember that the 2022 finance law provided for a reform of ICT on tobacco, by setting a progressive taxation plan for the period 2022-2026.
The successive increases in the price of cigarettes over recent years have in fact led to significant differences in tax levels depending on the different public sales prices of these products.
Read also: Harmfulness of cigarettes: Morocco will impose new standards from January 1, 2024
The revision of the cigarette taxation methods makes it possible both to preserve the interests of the Treasury (by ensuring additional revenue) and to reduce the substantial price gap between so-called low-cost cigarettes and those of premium brands.
The increase in ICT might also respond to a concern for preserving the health of citizens by encouraging smokers to curb their consumption.
According to the new taxation scheme established by the 2022 finance law, the specific ICT quota should increase from 100 dirhams in 2022 to 550 dirhams in 2026. The minimum collection should rise from 710.2 dirhams in 2022 to 953 dirhams in 2026 (for a total of 1,000 cigarettes).
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