Since January 2025, a tax distortion has been undermining an entire sector of the industry. The Finance Act maintained the 12 percent tax on raw wood, essential for local manufacturing, while reducing to 6% the duties applied to finished wood products imported from Europe, Turkey or Asia.
Nine months later, Moroccan manufacturers are still trying to understand the logic behind this decision which, they say, encourages imports and penalizes domestic production. Because behind this apparently technical differential, the competitiveness of Moroccan manufacturers is being eroded. From Richbond to Maroc Bureau, via 10Rajeb, Bois&co and Bibancom, players in the sector are denouncing a policy that favors imports to the detriment of local added value.
They point out that, in an industry where the raw material often represents more than half the cost price, increasing the tax burden on raw wood mechanically weakens their margins and limits their capacity for investment.
Projects under threat
This imbalance is all the more unpopular as it contradicts the official line in favor of Made in Morocco. Industrialists point out that last January, the government was hammering home its commitment to supporting local businesses, at the very time it was introducing this unfavorable measure. As a direct consequence, importing a door from Spain or a cupboard from Turkey costs less than producing it in Morocco. An aberration that weakens a sector representing over 4,000 jobs, at a time when major hotel and real estate projects are multiplying.
« Local manufacturers are witnessing an unprecedented loss of competitiveness, as our costs are artificially increased by a tax on raw materials »
« Local manufacturers are witnessing an unprecedented loss of competitiveness, as our costs are artificially burdened by a tax on raw materials that our foreign competitors do not have to bear », said Othmane Tazi, Secretary General of the Moroccan Association of Wood and Furniture Industries (AMIBA) and Managing Director of Richbond Hospitality & Contract.
Hotels, residences and construction sites planned for major upcoming sporting events (CAN 2025, World Cup 2030) run the risk of being fitted out with imported furniture, favored by the tax system. Yet thousands of rooms, apartments and public spaces should reflect Moroccan know-how. If the current logic continues, this showcase will be occupied by foreign products, even though local manufacturers claim to have the skills and capacity to meet demand.
According to our information, discussions have been initiated with the Department of Commerce to try to correct this tax anomaly. Industrialists hope that an amendment will be introduced in the next Finance Act, currently in preparation, to re-establish a minimum level playing field between raw materials and finished products. But uncertainty remains, and the sector fears that this situation will persist, accentuating its already heavy dependence on imports.
The spectre of a safeguard inquiry
This paradox is not new. Already last year, the opening of a safeguard investigation into MDF panels at the request of CEMA Atlas Woods (CBA), a subsidiary of the Lamrani family’s Safari Group, had sparked off a lively controversy. Presented as a response to the explosion in imports, the measure was officially renewed on September 10, with the introduction of new quotas.
In concrete terms, this measure does not concern finished furniture, but coated particleboard – an essential raw material for Moroccan manufacturers of doors, cupboards and furniture. From now on, an annual quota of 35,280 tons may be imported without surtax, but any excess will be subject to an additional duty of 1.6 dirham per kilo.
The reason why the Ministry has renewed the safeguard measure is that it considers that the threat is still present. In its opinion, the Ministry points out that panel imports may have stagnated between 2021 and 2024, with an average annual volume of 3.5 million m², but that « it remains premature to consider this situation as truly favorable. »
It also points out that the local sector has seen a recent improvement in its indicators, but considers this progress to be « very recent and precarious ». Finally, Ryad Mezzour’s department warns against « the risk of increased imports » driven by the growing attractiveness of the Moroccan market for foreign producers against a backdrop of falling demand in their domestic markets.
CEMA, the big winner?
« To date, CEMA is the only major national producer, and cannot meet market needs alone »
But for furniture manufacturers, this renewal only reinforces the impression of a policy geared towards protecting a single player. « To date, CEMA is the only major national producer, and it alone cannot meet the needs of the market, both in terms of volumes and the diversity of panels on offer », said Othmane Tazi.
A situation that fuels the frustration of a sector forced to import to satisfy local demand, while being penalized by an inconsistent tax system. Industrialists also fear that this protectionist rationale will discourage investment in the sector, limit the move upmarket and jeopardize the creation of new jobs.
All eyes are therefore on the Finance Law 2026. Manufacturers hope it will correct a simple anomaly: not taxing raw materials more heavily than finished products. They also hope that the safeguard measure on MDF panels, renewed this year with its quota system, will not take hold for long.
Otherwise, they warn, the distortion will continue to penalize local production and deprive Morocco of a showcase for its know-how, just when the 2030 World Cup is opening up an unprecedented market.
Written in French by Safae Hadri; Edited in English by AngloMedia Group
