(Ecofin Agency) - Morocco will increase its tariffs on certain imported products. This is revealed in the draft amending Finance Law proposed by the government for the financial year 2020.
According to the document, the import duties applicable to certain finished consumer products will now rise from 30% to 40%. The measure aims to strengthen the protection of national production to accompany the efforts undertaken to support businesses whose activities have been adversely affected by the COVID-19 pandemic.
In the framework of the 2020 Finance Law, the Moroccan authorities had already planned to increase the customs tariffs applicable to certain finished products from 25% to 30%. At the time, the main objective was to improve customs revenue collected from import duties, encourage local production, and reduce the country’s trade deficit.
However, the arrival of the pandemic, which affected at least 15,079 people in the country, added further pressure on national foreign exchange reserves, prompting the government to opt for a policy of import substitution by local production. In addition to these economic measures, the new Amending Finance Law also provides for major investments in the social sector, notably through the MAD10 billion ($148 million) Special Anti-Coronavirus Fund launched by the authorities.
It should be noted that according to the government, the new measures to increase customs tariffs will remain “within the limit of the rates bound by Morocco at the World Trade Organization (WTO).”
Moutiou Adjibi Nourou