Alcoholic Drinks: A Relief for Bar Owners

Bar owners have something to look forward to. They have, as reported by L’Economist in today’s edition, won their case on the part of taxation that their activity supports, namely ICT at 900 DH/hectolitre and VAT at 20%. According to the newspaper, they avoid increasing taxes and thus encouraging illegal trade.

The daily argues that a further increase of taxes on alcoholic drinks would affect tourism even though it is noted that the overwhelming majority of consumers are Moroccan. Beyond that, the concern to secure employment takes priority. Over a decade, the sector has seen 1,300 points of sale closed. Even Marjane and Acima have stopped selling alcohol. This is at a time when the market shares of supermarkets have grown significantly to represent up to 40% of the volumes marketed.

L’Economist notes that the taxation of alcoholic drinks has more than doubled over the last decade: VAT, ICT and specific tax (1 DH/litter of wine). The State intends to raise 718 million DH in tax revenues on alcohol in 2020. An amount that should be added to the 678 million DH collected in 2018. Not to mention nearly MAD 878 million in the form of taxes applicable to beer consumption.

As for national production, the newspaper notes that it has more than doubled over the past decade. In the wake of the bars, the VAT rate applied to coffee shops has been reduced to 10%.

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