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Lekjaa warns against steep tax hikes on e-cigarettes, citing smuggling risks
Fouzi Lekjaa, Morocco’s Minister Delegate in charge of the Budget, has cautioned against sharp increases in taxes on nicotine products, including electronic cigarettes, warning that such measures could have unintended consequences. Speaking about the government’s tax strategy, Lekjaa emphasized the need for gradual adjustments to avoid fueling smuggling networks and undermining state revenues.
While taxes on tobacco products have been raised in 2020 and 2022, Lekjaa warned that exceeding a “reasonable limit” could drive consumers toward illegal markets, weakening regulatory control and reducing public health benefits. He explained that balancing tax hikes with measures to limit smuggling is essential for maintaining market stability and achieving public health goals.
Comprehensive strategy needed
Lekjaa stressed that taxation alone is insufficient to curb smoking and nicotine consumption. He advocated for a broader approach, combining public awareness campaigns, stronger market oversight, and carefully designed tax policies to ensure both effective regulation and revenue generation.
The minister underlined that Morocco’s tax policy on tobacco products is designed to discourage smoking while safeguarding public finances. Updated annually through Finance Laws, the policy faces new challenges with the emergence of vaping devices and heated tobacco products. These innovations require regulators to adapt their strategies to maintain control over the market.
Tobacco smuggling, particularly in border regions, continues to be a persistent issue. By adopting a gradual and balanced approach, policymakers aim to deter consumption without driving consumers toward illegal products, thereby minimizing the risk of smuggling and revenue loss.