2027 finance bill: Morocco plans higher luxury car tax, up to 24%

Morocco’s draft finance bill for 2027 includes a heavier tax on luxury cars. The entry threshold of MAD 400,000, calculated before VAT, would stay unchanged, but the rates applied above it would rise.

At the lower end, cars priced between MAD 400,000 and MAD 600,000 would see their rate move from 5% to 6%. At the upper end, vehicles worth more than MAD 1 million would be taxed at 24%, up from 20% today.

A mid-range example makes the impact clear: on a car valued at MAD 700,000, the levy would rise from MAD 70,000 to MAD 84,000.

Depending on the case, the new rates would apply either when a vehicle is registered in Morocco for the first time or when it clears customs. Electric and hybrid cars would remain exempt from the tax.

The revised rates still depend on Parliament adopting the bill. If approved, they are set to take effect on January 1, 2027.