Casablanca-The Government Council has approved a draft decree to halt the collection of import duties on domestic cattle, as presented by Minister Delegate in charge of the Budget, Faouzi Lekjaa. This move follows a year-long effort by the government to suspend customs duties and value-added taxes on domestic cows until December 31, 2023. However, due to persisting challenging climatic conditions and their impacts, the government aims to extend this suspension until December 31, 2024, ensuring continuity in the supply to the local beef market.
In response to criticisms from meat industry stakeholders and importers, Mohamed Siddiqui, the Minister of Agriculture, Fisheries, Water, Forestry, and Rural Development, announced the government’s decision to abolish the value-added tax and customs duties on imported cows. Siddiqui emphasized that the imposition of these taxes earlier in the year had drawn significant criticism.
Speaking to the press, Siddiqui clarified that the decision does not entail the imposition of any value-added tax on sheep imports. This implies the removal of subsidies previously set at 500 dirhams (approximately $51.54 USD) per head for their import.
The decision comes amidst confusion in recent weeks regarding the importation of cattle for slaughter, with importers insisting on a 20% value-added tax and a 2.5% customs duty.
Concerns have been raised within the meat trade sector regarding the potential instability of meat prices in the upcoming period if the import tax remains unchanged. With Ramadan approaching, during which there is traditionally high demand for red meat, professionals fear the consequences of sustained high taxes on imports.
Some professionals have already observed price increases of more than 6 dirhams (approximately $0.61 USD) per kilogram in major slaughterhouses across the kingdom, such as in Casablanca. They anticipate that beef prices may surpass 100 dirhams (approximately $10.30 USD) during installment sales if the current situation persists, pending the government’s decision expected to be implemented in the coming days.