Morocco cancels value-added tax on agricultural products to curb inflation

RABAT (Reuters) – The Moroccan government said on Thursday it adopted a decree cancelling the value-added tax on agricultural inputs to help lower prices of fresh produce and other agrifoods.

Food inflation jumped to 20.1% in February, bringing general inflation to 10.1%, a level unmatched since the 1980s.

The measure is in line with efforts to “stem the sources of inflation and higher prices both for farm produce and for agrifood products,” Prime Minister Aziz Akhannouch said in a statement after the cabinets weekly meeting.

Morocco has been importing beef cattle from Brazil after it lifted import duty to reduce meat prices.

The country has also restricted tomato exports to Africa and Europe to ensure supply of the domestic market.

(Reporting by Ahmed Eljechtimi in Rabat; Editing by Matthew Lewis)