By Timothy S. Donahue

Top Takeaways:

• Vape Tax: The proposed levy would rise taxes from MAD 50 to MAD 100 per unit.
• Broader Coverage: Refillable devices and components would also face new tax rates.
• Cigarette Duties: A five-year plan would increase all tobacco taxes through 2031.

Morocco wants to make vaping more expensive, and even refillable devices won’t escape the taxman.

The government has proposed doubling its domestic consumption tax on vaping products from MAD 50 (US$5.40) to MAD 100 per unit, effective Jan. 1, 2027, and expanding the levy to cover rechargeable devices and separately sold components.

The changes are set out in Article 5 of Finance Bill No. 60.26, which the government approved on Oct. 20 and subsequently submitted to parliament.

Morocco introduced a 50-dirham excise tax on disposable e-cigarettes in its 2025 Finance Law. The new proposal would extend that tax to all e-cigarette categories, including disposable, rechargeable, and refillable devices, regardless of whether they contain nicotine.

The expanded definition would also cover cartridges, tanks, and other components sold separately, including empty cartridges and equipment intended for use with vaping liquids. The change would bring products previously outside the tax framework into the same excise system.

The government cited the emergence of new vaping devices that combine disposable and rechargeable features as a reason to broaden the tax. The proposal also reflects World Health Organization recommendations on the health risks of e-cigarettes, particularly among young people.

Importers and distributors could face higher costs and additional customs compliance requirements. Any increase in retail prices would depend on how much of the additional tax businesses pass through to consumers.

The budget also proposes a new five-year excise schedule for conventional cigarettes, extending Morocco’s tobacco tax reforms through 2031.

Under the plan, the specific excise component would rise from MAD 645 per 1,000 cigarettes in 2027 to MAD 1,053 in 2031. The proportional component would increase from 57.5% to 61.5%, and the minimum tax would rise from 1,025 to 1,346 dirhams per 1,000 cigarettes.

The proposed changes aim to increase tobacco tax revenues and narrow the price gap between lower-cost and premium cigarette brands. The government projects tobacco excise revenue of 19.32 billion dirhams in 2027, up from 17.72 billion dirhams in 2026.

The legislation remains subject to parliamentary approval. If adopted as proposed, the new vaping tax and the first stage of the cigarette tax increases would take effect Jan. 1, 2027.