Government expects MAD 23.5 billion in 2027 revenue from tobacco, alcohol and gambling

Morocco expects to collect more than MAD 23.5 billion in 2027 from taxes on manufactured tobacco, alcoholic beverages, beer and selected revenue streams linked to betting and lotteries, according to the draft Finance Bill.

The government has projected MAD 23.3 billion in domestic consumption taxes on tobacco, wine, alcohol and beer, alongside MAD 195 million from betting deductions, lottery proceeds and profits distributed by the Royal Society for the Encouragement of the Horse.

The draft Finance Bill No. 60.26 also proposes expanding the tax administration’s powers to address failures to declare taxable gambling winnings, allowing the authorities to initiate an automatic tax assessment procedure under the conditions established by law.

The projected figures cover specific budget lines and do not represent the total turnover of Morocco’s betting and gambling industry or all taxes that may be collected from the sector.

Tobacco remains the main source of revenue

The government expects to collect MAD 19.32 billion from the domestic consumption tax on manufactured tobacco in 2027, up from MAD 17.72 billion projected for 2026. The increase of MAD 1.6 billion represents approximately 9.1%.

Tobacco is expected to account for around 82.9% of the combined revenue projected from manufactured tobacco, wine and alcohol, and beer.

Revenue from wine and alcoholic beverages is forecast to rise to MAD 1.83 billion in 2027, compared with MAD 1.49 billion in 2026, an increase of about 23%.

Beer taxes are projected to generate MAD 2.15 billion, up from MAD 1.96 billion, representing an increase of around 9.5%.

Combined revenue from wine, alcohol and beer is expected to reach nearly MAD 3.98 billion.

The overall amount projected from these three categories of products is approximately 10.1% higher than the 2026 estimate.

Higher taxes on tobacco and alcoholic beverages

The draft Finance Bill outlines tax rates and minimum levies for alcoholic beverages and manufactured cigarettes.

For beer, the proposed framework sets an ad valorem component of 30%, with a minimum tax of MAD 1,705 per hectoliter. Wine is subject to the same percentage, with a minimum of MAD 1,265 per hectoliter.

For certain types of alcohol and spirits, the proposed ad valorem rate is 50%, with a minimum tax of MAD 33,150 per hectoliter of pure alcohol.

For manufactured cigarettes, the bill sets a specific tax of MAD 645 per 1,000 cigarettes, alongside an ad valorem rate of 57.5% and a minimum tax of MAD 1,025 per 1,000 cigarettes in 2027.

The minimum tax is scheduled to rise further under the proposed phased adjustments, reaching MAD 1,097 in 2028, MAD 1,176 in 2029 and MAD 1,261 in 2030, before increasing to MAD 1,346 per 1,000 cigarettes from Jan. 1, 2031.

Projected revenue from manufactured tobacco has increased significantly in recent years, rising from MAD 12.5 billion in 2024 to MAD 13.7 billion in 2025 and MAD 17.72 billion in 2026. The 2027 projection is more than MAD 6.82 billion above the 2024 estimate.

Government forecasts MAD 195 million from betting and lotteries

Separate budget lines in the draft Finance Bill project MAD 195 million in revenue linked to betting, lotteries and the Royal Society for the Encouragement of the Horse in 2027.

Of this amount, MAD 90 million is expected from deductions on mutual betting, while the special Treasury account for lottery proceeds is projected to receive MAD 80 million. Both accounts have authorized expenditure ceilings matching their projected revenue.

The government also expects to receive MAD 25 million in profits distributed by the Royal Society for the Encouragement of the Horse, which operates in the field of horse-racing-related betting.

The two special Treasury accounts are part of a broader system of earmarked public funds. The projected MAD 170 million from betting deductions and lottery proceeds is therefore not equivalent to general budget revenue available for all government spending.

The draft budget also retains separate lines for deductions from gambling proceeds and betting on horse and greyhound races within the general budget. However, it lists these items for reference without assigning them specific revenue estimates for 2027.

As a result, the MAD 195 million figure covers only the three betting- and lottery-related items for which the draft provides numerical estimates. It should not be interpreted as a comprehensive estimate of all public revenue generated by gambling activities in Morocco.

Tax enforcement to cover gambling winnings

Alongside the projected revenue, the draft Finance Bill proposes amending Article 228 of Morocco’s General Tax Code, which governs the automatic tax assessment procedure.

The proposed amendment would include declarations of gambling winnings, referred to under Article 154 ter-3 of the tax code, among the cases in which the tax administration may initiate that procedure.

Under the proposal, failure to submit the relevant declaration within the legal deadline, or submitting an incomplete declaration, could trigger the procedure, subject to the conditions and safeguards established by law.

The amendment is scheduled to take effect on Jan. 1, 2027, for procedures initiated from that date, if the bill is adopted in its proposed form.

The measure would not, by itself, introduce a new tax on gambling winnings. Instead, it would expand the circumstances in which an existing tax enforcement mechanism could be used when taxpayers fail to meet their declaration obligations.

The proposal distinguishes between deductions collected from betting and lottery activities and tax obligations that may apply to individuals who receive winnings.

Consumption taxes exceed projected import duties

The MAD 23.3 billion projected from manufactured tobacco, wine, alcohol and beer exceeds the MAD 19.97 billion forecast for import duties in 2027 by approximately MAD 3.33 billion.

The comparison underscores the importance of domestic consumption taxes in Morocco’s projected public revenue, particularly those levied on tobacco products.

The gambling-related revenue estimate is much smaller by comparison. The MAD 195 million projected from the three specified betting and lottery items represents around 0.04% of the government’s forecast MAD 482.4 billion in ordinary budget revenue. However, most of the betting-related amount is earmarked for special Treasury accounts rather than classified as ordinary budget revenue.

All figures remain projections under the 2027 draft Finance Bill, which is subject to parliamentary debate and possible amendments before final adoption.

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