Morocco has reduced taxes on imported smartphones from 17.5% to 2.5% under its 2026 Finance Law, a move aimed at stabilizing the market, curbing smuggling, and supporting legally operating businesses. The reduced rate applies to all mobile phones, whether fully assembled or imported in parts for local assembly, as well as other wireless communication devices.
Government officials said the higher tax introduced in 2024 significantly increased the cost of legally imported phones, pushing consumers toward untaxed devices brought into the country through informal channels. This shift negatively impacted authorized importers and retailers while distorting market competition.
By lowering the tax rate, authorities aim to redirect sales back into the formal economy, strengthen consumer confidence, and improve compliance. The measure is also expected to encourage local phone assembly, supporting industrial growth and job creation.
The General Confederation of Moroccan Enterprises (CGEM) had previously urged the government to roll back the 2024 tax increase, arguing that it failed to protect local production and instead harmed compliant businesses. Industry players believe the revised tax regime will help clean up the market and, over time, increase tax revenues by formalizing more sales activity.
While consumers anticipate lower prices, retailers note that price reductions will not be immediate, as existing inventory was imported under the old tax rate. Noticeable price drops are expected once new shipments arrive, with some models potentially becoming cheaper by several hundred dirhams.
