Morocco’s government has approved higher taxes on electronic cigarettes, waterpipes (shisha), and traditional tobacco under its 2023 Finance Bill. The measure expands the tax base to include tobacco-free herbal shisha and e-cigarettes to curb youth addiction while boosting state tobacco revenue to MAD 12.5 billion.
- New Shisha Duty: A tax of MAD 675 ($63) per kilogram applies to all shisha smoking materials, including tobacco-free herbal blends.
- Cigarette Price Hikes: Pack prices rise by MAD 1 to MAD 3 as part of a multi-year tariff escalation plan.
- Targeted Revenue: Morocco projects tobacco tax revenues to reach MAD 12.5 billion ($1.1 billion), up nearly 6%.
- Alcohol Taxes Unchanged: Duties on alcoholic beverages remain flat to avoid fueling illicit, toxic contraband markets.
Morocco’s Finance and Economic Development Committee has approved higher taxes on electronic cigarettes, waterpipes, and combustible tobacco. The policy targets youth nicotine consumption and aligns domestic tax policy with World Health Organization (WHO) recommendations on smoking hazards.
Expanding Taxes to E-Cigarettes and Herbal Shisha
The revised tax code broadens the domestic consumption tax base to include electronic cigarettes and tobacco-free shisha. Official statements confirmed the policy aims to “preserve the health of consumers, especially young adults, and to protect them against the negative effects of consumption and addiction.”
Previously, imports of tobacco-free shisha entered the country without specific excise taxes. Moroccan authorities aligned regulations with WHO and European Commission classifications, which treat fruit and herbal smoking blends with the same regulatory severity as traditional tobacco. Under the new rules, consumers and importers pay MAD 675 ($63) per kilogram of shisha material.
| Product Category | 2023 Tax / Price Adjustment | Regulatory Basis |
|---|---|---|
| Shisha (Tobacco & Herbal) | MAD 675 ($63) per kilogram | 2023 Finance Bill amendment |
| Cigarette Packs | Price increase of MAD 1 to MAD 3 per pack | Year two of the five-year tax strategy |
| Electronic Cigarettes | Tax base expansion applied | WHO alignment on smoke-free products |
Five-Year Tobacco Strategy and Alcohol Policy Divergence
The price increases on combustible cigarettes mark the second year of Morocco’s five-year tobacco reduction strategy introduced by the Administration of Customs and Indirect Taxation (ADII). The government projects overall tobacco revenue to hit MAD 12.5 billion ($1.1 billion) as manufacturers pass tax hikes directly to retail consumers.
In contrast to tobacco and vaping products, lawmakers rejected tax increases on alcoholic beverages for 2023. Officials kept alcohol taxes stable to prevent consumers from turning to deadly, unregulated black-market alternatives, following a tragic poisoning incident in Ksar El Kebir that claimed 19 lives.
