Morocco plans to double e-cigarette tax in 2027 as tobacco duties rise

Morocco plans to double the domestic consumption tax on electronic cigarettes from MAD 50 to MAD 100 per unit starting January 1, 2027, under proposed measures that could raise retail prices and increase costs for importers and distributors.

The 100% increase, included in Article 5 of the 2027 Finance Bill, would also extend taxation to a broader range of vaping products, including refillable devices and their components.

The legislation, submitted to parliament as Bill No. 60.26, would expand the legal definition of electronic cigarettes beyond disposable devices to cover rechargeable and refillable products, whether or not they contain nicotine.

The revised definition includes devices used to inhale vapor through a mouthpiece, along with cartridges, tanks and equipment sold separately, whether empty or prefilled with vaping liquids.

The changes would bring previously excluded products into the tax system and limit opportunities to avoid taxation by selling components separately.

Higher costs for importers and consumers

The proposed increase is expected to affect importers and distributors, who would need to adjust customs declarations and commercial practices to comply with the expanded legal definition.

However, the extent of any retail price increase will depend on distributors’ profit margins and how much of the additional tax businesses pass on to consumers.

The measure remains subject to parliamentary approval.

Conventional cigarette taxes to rise through 2031

The government has also proposed a five-year tax reform for manufactured tobacco, introducing gradual increases in both the specific and proportional components of the domestic consumption tax between 2027 and 2031.

Under the proposed schedule, the specific tax would rise from MAD 645 per 1,000 cigarettes in 2027 to MAD 1,053 in 2031, an increase of approximately 63.3%.

The proportional component would increase from 57.5% to 61.5%, while the minimum tax collected would rise from MAD 1,025 to MAD 1,346 per 1,000 cigarettes, up 31.3%.

The government expects tobacco consumption tax revenue to reach MAD 19.32 billion in 2027, compared with MAD 17.72 billion in 2026.