For conventional cigarettes, the reform builds on measures introduced under the 2022 Finance Law, which scheduled gradual tax increases over five years, through 2026. The new plan for 2027-2031 aims to boost state revenue, narrow price gaps between brands and improve consumer health protection, in line with World Health Organization (WHO) recommendations.
The presentation note accompanying the 2027 Finance Bill does not specify the proposed annual tax rates on cigarettes or the exact price increases they could trigger. The Administration of Customs and Indirect Taxes (ADII) usually announces new cigarette prices on January 1. The new price list will therefore be needed to determine the prices that will apply in 2027.
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The tax increase is more clearly defined for electronic cigarettes. The government proposes doubling the domestic consumption tax from 50 to 100 dirhams per unit and extending it to disposable and refillable e-cigarettes, as well as their devices and components.
Under the 2025 Finance Law, the 50-dirham-per-unit tax applied only to disposable electronic cigarettes. According to the presentation note accompanying the 2027 Finance Bill, this restriction encouraged the emergence of new products designed to circumvent the tax, including completely knocked-down (CKD) kits and empty capsules or tanks known as pods.
The proposed expansion is intended to cover all product categories and account for the emergence of new devices. The government also cites the health risks associated with these products, particularly among young people.
The higher tax could push up retail prices for electronic cigarettes, although the exact impact remains unclear.
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A new stage following the 2022 reform
The reform of conventional cigarettes continues a process launched in 2022. It involved abolishing the minimum tax burden threshold applicable to cigarettes and gradually increasing the domestic consumption tax rates over a five-year schedule.
The policy has already led to successive price increases, particularly for budget brands. The latest price revision took effect on January 1, 2026, with increases of 50 centimes to 3 dirhams, depending on the product. Affected brands included Marquise, Casa, Fortuna and Gauloises.
