Sugar taxation back on the table for the Executive

At each Finance Law, the introduction of an ICT on processed products using subsidised sugar is presented, but the implementation of this tax has never been realised, in consideration of the great lobbying of industrialists, known for their great power and influence, such as lemonade makers, biscuit, ice cream, chocolate, confectionery producers, etc.

This year, the Akhannouch government intends to adopt it very early, even before the arrival of the 2023 Finance Bill where these issues are usually debated. In order to convince operators and MPs of the merits of introducing an ICT on industrial products consuming subsidised sugar and to listen to the version of the industrialists in order to reach a compromise on this tax, the Ministry of Finance organised on 2 March a meeting on the subject, with the presence of operators, the CGEM and MPs, within the framework of a day of study within the Finance Committee of both Chambers.

During this study day, the Ministry of Finance specified in its presentation that “the subsidy on sugar has reached over the last five years an average of 3.4 billion dirhams for a consumed quantity of an average of 1.2 million tons, while 25% of this quantity is consumed by the food industries”. Between 1999 and 2006, the state managed to recover the indirect subsidies allocated to certain producers, a measure that was abandoned in 2007 for all industries except lemonade makers.

It is worth mentioning that the amounts recovered by the state went from 400 million dirhams per year between 1999 and 2006 to 70 million dirhams thereafter. So far, only lemonade makers have been reimbursed, while being subject to the ICT on beverages only, including lemonades, juices and mineral water.

Following the example of several countries in the world, the Ministry of Finance recalls that Morocco must participate in a plan to reduce sugar consumption to meet public health needs. In this sense, the EESC has made several proposals aimed at reducing Moroccan citizens’ exposure to sweets in order to limit diseases such as diabetes, obesity, etc.