Parliamentarians challenge alcohol prohibition law for Moroccans amidst taxation debate

Parliamentary councilors called on the government to review the law that prohibits the sale of alcohol to Muslims during a session held on Thursday by the Finance, Planning, and Economic Development Committee of the House of Councilors.

The councilors said that the majority of alcohol consumers are Moroccans and that it is necessary to break with double standards and social hypocrisy.

Parliementary Lahcen Haddad from the Independence parliementary team said that there should be an open discussion about criminalizing alcohol consumption, suggesting regulating it to avoid what he called social hypocrisy.

Haddad said that an increase in alcohol taxes would lead to smuggling, pointing out that alcohol consumption reached 100 million liters annually for beer and approximately 14 million bottles of wine.

Haddad further added that taxing these products would push consumers towards unhealthy alternatives.

Haddad emphasized the need to differentiate between imported wines and local production, especially given the legal restrictions on alcohol sales to consumers. 

Haddad pointed out the societal contradictions in dealing with the issue of alcohol and its sale in national markets, calling for a break with the prohibition of alcohol consumption.

The MP said that the distribution of alcohol has been halted since the 1980s in some cities where it was legal and contributed to state revenues. 

Haddad brought attention to the fact that the production of “mahya” is spreading in many neighborhoods and rural areas, saying that taxation would only encourage the informal sector.

El Khomar E Morabit from the Authenticity and Modernity Team called for regulating the increase in taxes on alcohol consumption. He warned of the negative impact on the tourism sector, which Morocco is counting on to increase its numbers to 17 million tourists by 2026.

The councillour, who voted against the parliamentarians opposing the tax increase on alcohol, said that raising alcohol taxes would negatively impact attracting foreign tourists, especially amid the gradual recovery of the sector after the COVID-19 pandemic. 

Another councilor Mohamed Benfqih from the Social Justice Group called for allowing the sale of alcohol to Moroccans and Muslims without the need for a license. 

The councilor said that “we’re in a liberal and modern state, anyone who wants to sell alcohol should be allowed to sell it.” 

Benfqih further added that solving the problem of alcohol and drug abuse requires correction at the institutional level, including schools and families, not just through legislation.

Benfqih further added that many individuals who are facing legal issues are targeted near stores selling alcohol. He called for transparency when enacting regulations, as continuously increasing taxes would lead consumers to the black market and create other problems.

Benfqih urged addressing the black market for the sale and distribution of alcohol, especially poor-quality and corrupt products, and addressing legal shortcomings that have failed to reduce alcohol consumption.

Youssef Aidi, the head of the Socialist Team, said  that Moroccans from all walks of life consume large quantities of alcohol. He argued that any tax increase would first affect the poor, with repercussions in various areas, including health.

Aidi said that the increase in taxes would affect the purchasing power of Moroccans and the competitiveness of the tourism sector.

Councilors rejected the increase in domestic taxes on alcohol, warning of the impact of this increase on attracting foreign tourists, especially as Morocco prepares to host sporting events, including the 2030 World Cup.

The government expects the revenue from taxes on alcohol and alcoholic beverages in 2024 to reach approximately MAD 887.3 million. 

The 2024 financial law project includes tax updates, raising the internal consumption tax on alcoholic beverages from MAD850 to 1500 per hectoliter for wine, from MAD 1150 to 2000 per hectoliter for beer, and from MAD 18,000 to 30,000 per hectoliter for pure alcohol (ethyl alcohol).

It is worth noting that the House of Representatives approved, with a majority, last Wednesday, the draft financial law number 55.23 for the fiscal year 2024. 

The bill has been referred to the House of Councillors for further examination and voting before being re-submitted to the House of Representatives for the final approval within the framework of the second reading.