TAX NEWS
Morocco Suspends Import Duty On Cereals
by Ulrika Lomas, Tax-News.com, Brussels
During a recent sitting in Rabat, presided by Moroccan head of government Abdelilah Benkirane, Morocco’s governing council examined and adopted two bills exempting durum, soft wheat and barley from import duty.
Presented by Moroccan Economy and Finance Minister Nizar Baraka, bill number 35-12 provides for the adoption of the government’s decree from March 7, extending the period of temporary suspension of import duty on durum and soft wheat.
The measure is intended to ensure supply of the cereals to the country’s domestic market, and to avert a shortage of the vital foodstuff. The provisions are also aimed at stabilizing domestic consumption prices for wheat. As a result of large fluctuations of wheat prices on the global markets during the first quarter of the year, prices of these products have increased in general.
The Moroccan minister also presented bill number 36-12, providing for the adoption of the government’s decree from March 15, pertaining to the suspension of import duty on barley, currently at 35%.
The initiative is also designed to stabilize barley prices, as well to avoid price speculation following high pricing levels on the global markets, which reached USD277 per tonne in March.
The Moroccan finance ministry announced the temporary suspension of import duty on durum and soft wheat back in October 2011.
Last year’s decision followed examination of the global wheat market, which highlighted a global fall in stocks of around 10% to the lowest recorded level in three years.
At the time, the finance ministry underlined that the tense situation on the global markets for durum wheat was reflected in the “extremely high” international prices, leading to a significant impact on import costs into Morocco.
Aiming to support a normal supply of the commodity to the domestic market, the Moroccan government therefore proposed suspending collection of import duty on durum or hard wheat (80%) from October 1 to December 31, 2011.
In addition, collection of import duty on soft wheat (135%) was temporarily suspended from November 15 to December 31 last year.
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