Moroccans to consume next year an extra 1.45 billion dirhams in wine, beer and tobacco

The Moroccan government expects to reach a record growth in tax revenues derived from internal fees imposed on the consumption of alcohol, wine, beer, and tobacco, with a total of about MAD 14.45 billion for 2023, compared to MAD 13 billion this year.

The 2023 Finance Bill expects that the fee imposed on the consumption of those products during the next year will generate MAD 859 million, up compared to MAD 630 million in 2022.

The fee imposed on beer types is MAD 1.1 billion, up compared to MAD 814 million in 2022, added the same source.

Additionally, people who consume cigarettes will contribute to taxes of about MAD 12.5 billion through the fee imposed on manufactured tobacco, slightly up compared to MAD 11.8 billion in 2022.

The government is also counting on the rise in the fees imposed on soft drinks and lemonade, which will reach MAD 655 million next year, up compared to MAD 480 million this year.

Overall, the government assumes in the 2023 Finance Bill the realization of ordinary resources of about MAD 294 billion, compared to 255 billion dirhams, an increase of 15.47%.

Ordinary resources include direct and indirect taxes, customs duties, state property revenues, the proceeds of public companies, state financial contributions, gifts, wills, and privatizations, said the same source.

Indirect taxes top the regulation with MAD 120 billion, or 40% of the state budget resources, followed by direct taxes with MAD 113 billion, or 38%, and the proceeds of profits from public companies and institutions at MAD 19.4 billion, or 6.6%.

Direct taxes include income tax, which will generate MAD 48 billion, an increase of 11%, and the proceeds of corporate tax of MAD 61 billion, a rise of 18%, according to the same source.

More recently, the government of the United Kingdom announced the removal of restrictions that had previously prevented UK businesses from selling alcohol abroad in a number of nations, including Morocco.

Announced on October 13 in a press release, the removal of trade obstacles has unlocked export markets worth over £100 million (MAD 1.241.610.834).

“Morocco removed 49% tariffs that were mistakenly imposed on a range of UK spirits,” said Trade Secretary Kemi Badenoch according to the official UK website.

This change will help the UK to reach millions of new potential customers and boost alcohol exports, which reached £6.5 billion last year.