After long deliberations, the commission for the approval of prices of manufactured tobacco products recently ruled on a decision having repercussions on the cost of cigarettes in Morocco from January 1, 2025. This decision is part of the budget 2025, developed by the government, which seeks to mobilize financial resources without resorting to new direct taxes.
Thus, from January 2025, the price of a pack of cigarettes will increase by 0.5 to 10 dirhams, depending on the brand. Currently, a pack of “American” cigarettes of 20 units is sold on average for 35 dirhams. This policy of increasing tobacco prices, adopted by the authorities, however, seems to be becoming increasingly out of step with economic realities, especially as cigarette smuggling seems to be thriving in the Kingdom.
From January 2, 2025, a packet of “Casa” will be offered at 29 dirhams, while the wealthiest smokers will have to spend 135 dirhams for a packet of Chesterfield I (100 units), an increase compared to the 125 dirhams of 2024. The popular brand among young people, Camel Silver, will increase to 35 dirhams, compared to 34.5 dirhams previously. Some packages, like Camel Yellow, will remain at 34.5 dirhams. The Marlboro Red Beyond, as well as the Marlboro Blue Beyond, will see their price increase slightly, from 40 to 41 dirhams.
This price increase is part of a broader fiscal approach, aimed at reducing tobacco consumption by increasing its cost. However, although this strategy is often put forward as a lever to reduce consumption, the effects observed so far seem far from corresponding to the initial objectives. Indeed, successive increases have not really reduced consumption, and some observers point out that the opposite seems to be happening, with an intensification of the parallel market.
As for the impact of this measure on the population, opinions differ. Some believe that this increase risks making smokers more insecure, given the difficulty of quitting smoking. Others, more moderate, suggest that the attention of the authorities should turn more towards prevention, rather than constantly increasing prices. At the same time, some are calling for a strict ban on advertising of tobacco products and electronic cigarettes, in order to reduce their exposure and limit their consumption.
However, one point seems to be unanimous: this new price increase policy will certainly favor the parallel market, with many smokers turning to contraband to buy cigarettes at significantly lower prices.
It should be remembered that, despite these tensions around price increases, the tobacco tax remains a significant source of revenue for the State, in particular thanks to the tax applied on alcoholic beverages. The commission in charge of price approval meets periodically to establish tobacco sales prices in Morocco, thus contributing to the financing of the state budget while meeting fiscal and public health objectives.
