2027 finance bill: excise on e-cigarettes doubles to MAD 100 per unit

Vapers in Morocco will see a sharp rise in the e-cigarette tax starting January 1. The 2027 finance bill doubles the internal consumption tax on these products from MAD 50 to MAD 100 per unit, an increase of 100 percent.

The measure appears in Article 5 of finance bill No. 60.26, sent by the government to Parliament. Beyond the higher rate, the text extends the tax, until now limited to single-use devices, to every type of electronic cigarette, including refillable models and their components.

Wider legal definition

Under the bill, the tax covers any device used to inhale vapour through a mouthpiece, whether or not it contains nicotine. Component parts fall under the same rule: cartridges, tanks and devices sold without them, whether empty or prefilled with vaping liquid.

Three categories are now covered: disposable devices, devices refilled from bottles or tanks, and those running on replaceable cartridges. The broader definition brings into the tax base products that previously escaped it and limits the scope for selling parts separately to avoid paying the levy.

Importers and distributors will have to align customs declarations and marketing with the new definition, given the variety of products on the Moroccan market. The increase is expected to weigh on import and distribution costs and could push retail prices up, though the final impact on consumers will depend on traders’ margins and how much of the extra tax they choose to pass on.

Tobacco reform through 2031

The same bill introduces a new tax reform for manufactured tobacco covering 2027 to 2031. It gradually raises both the specific and the proportional components of the internal consumption tax and revises the minimum collection, opening the door to possible increases in the price of conventional cigarettes in the coming years.

According to the schedule set out in Article 5, the specific component will climb from MAD 645 per thousand cigarettes in 2027 to MAD 1,053 in 2031, a rise of about 63.3 percent. The proportional component will go from 57.5 to 61.5 percent, while the minimum collection will move from MAD 1,025 to MAD 1,346 per thousand cigarettes, up 31.3 percent.

Revenue target of MAD 19.32 billion

The government is counting on indirect taxes to boost resources. Its 2027 forecasts put receipts from the internal consumption tax on manufactured tobacco at around MAD 19.32 billion, against MAD 17.72 billion in 2026, a projected gain of MAD 1.6 billion, or roughly 9 percent.

The new tax provisions still have to complete the legislative process and receive final approval.