Parliamentarians propose to increase ICT on alcohol and tobacco

Alcohol and cigarette consumers, this concerns you. Considered the “weak link” because of their “illegality» or even for reasons of «public health», certain parliamentary groups want to attack its two products by proposing to increase the TIC.

Indeed, during the discussion of the 2023 Finance Bill (PLF) by the Finance and Economic Development Committee of the House of Representatives on Tuesday, the parliamentary groups of the first chamber submitted their proposed amendments to the bill , before fixing a session for its approval within the commission.

In this regard, the opposition components in the House of Representatives, with the exception of the Socialist Union team, have decided to table joint amendments to the finance bill for the coming year, by proposing to increase the domestic consumption tax (TIC) on alcoholic beverages and non-alcoholic beer.

According to the opposition amendments, charges imposed on the consumption ofbeershould go from 600 dirhams per hectolitre to 800 dirhams, and for other beers, from 1,150 dirhams per hectolitre to 1,400 dirhams, and from 850 dirhams per hectolitre to 1,200 dirhams.

This amendment aims, according to what has been specified by the components of the opposition, in particular the Popular Movement (MP), the Progress and Socialism Party (PPS) as well as the Justice and Development Party (PJD), to increase the internal consumption tax imposed on beer and alcohol in order to reduce their consumption and preserve the health of citizens.

Concerning the internal taxes imposed on the consumption of manufactured tobacco, the opposition groups have proposed raising the minimum amount of collection from 100 dirhams per 1,000 cigarettes to 800 dirhams per 1,000 cigarettes, while they demanded an increase in the TIC for cigars and cigarillos from 750 dirhams per 1,000 units of fine-cut tobacco intended for rolling cigarettes at 1,850 dirhams per unit.

The opposition components proposed to increase the consumption tax on the rest of manufactured tobacco and fine-cut tobacco to 1,150 dirhams per 1,000 grams. They are also proposing new taxes on hookah or water pipe tobacco (Muassel) from 420 dirhams per 1,000 grams to 730 dirhams per 1,000 grams, and other related products from 158 dirhams per 1,000 grams to 305 dirhams.

Thus, the various opposition parties have explained that this amendment aims to increase the TIC imposed on beer and manufactured tobacco in order to reduce consumption and preserve the health of citizens.

In 2021, the government rejected an amendment tabled by opposition groups to chapter 9 of article 4 of the general customs code of the finance bill, which provides for an increase in taxes on alcoholic beverages of all kinds. Moreover, the government’s forecasts in the finance law for the year 2022, revenue and royalties on alcohol and beer, exceeded 13 billion dirhams.

The government of Aziz Akhannouch is counting on the revenue from royalties imposed on alcohol, and the different types of beer as well as tobacco to relaunch the 2023 budget. The 2023 finance bill also plans to bring in 14.4 billion dirhams to the state coffers thanks to this increase.

These revenues are distributed in the 2023 finance bill on the “levies on manufactured tobacco“, them “levies imposed on alcohol and spirits” as well as “levies imposed on types of beer“.

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