Morocco confirms its ability to boost its tax revenues through a strategy of ambitious and targeted reforms. This strengthening of tax flows reflects the adaptation of public policies to the social and economic needs of the country, with particular attention paid to broadening the tax base.
In its approach aimed at increasing tax revenues, we can consider that Morocco has succeeded in its bet. The latest figures indicate that revenues reached 299 billion dollars (billion dirhams) in 2024 compared to 199 billion dirhams in 2020, an annual increase of around 11%. And even for 2025, the Finance Law expects a double-digit increase in tax revenue to nearly 330 billion dirhams. An improvement which was observed at the level of the main categories of taxes.
During a session in the House of Representatives, Fouzi Lekjaa, Minister Delegate to the Minister of Economy and Finance, responsible for the Budget, attributes this growth to tax reforms aimed at meeting social and economic needs.
Indeed, the additional 100 billion dirhams collected were entirely devoted to social programs. In detail, 44 billion dirhams supported social dialogue, 35 billion dirhams were allocated to direct financial aid and 19.5 billion dirhams contributed to covering health insurance contributions.
Growth in tax flows in 2024
In terms of tax categories, corporate tax revenue increased from MAD 48.8 billion to MAD 70 billion, while VAT revenue increased from MAD 56 billion to more than MAD 89 billion, which represents an increase of 59%. Income tax revenue also saw a significant increase, going from 40 billion dirhams to 59.6 billion dirhams, an improvement of 49%.
This increase is explained by the broadening of the tax base to liberal professions and non-salaried income, categories previously under-taxed. Efforts are continuing to further replenish public coffers.
To do this, the government has put in place a certain number of measures to, on the one hand, simplify tax procedures, and on the other hand, strengthen taxpayers’ confidence in the administration. Measures have been initiated for this purpose, such as the unified professional contribution aimed at reducing administrative obstacles for small and medium-sized businesses.
Additionally, to combat tax evasion, authorities introduced withholding tax policies, which allowed for broader coverage and strengthened tax controls. A policy which has borne fruit since a 26% increase in revenue was noted, increasing from 14 billion dirhams in 2023 to 17.8 billion dirhams in 2024.
In the same spirit, the voluntary tax compliance process launched at the end of the year aims to increase revenue. Presenting the results of this initiative, Lekjaa dissected the amount of 127 billion dirhams collected.
Of this amount, 77 billion dirhams come from bank declarations, 48 billion dirhams from direct declarations and 2 billion dirhams from assets held abroad. He assured those who had declared their funds that they remained free to use them for investments or real estate acquisitions.
The Tax Administration guarantees confidentiality and will not revisit these cases in order to encourage greater compliance in the future. The Finance Law introduces a tax rate of 5%, which should generate an additional 6 billion dirhams for state revenue. The delegate minister described this measure as part of a broader strategy aimed at strengthening trust between taxpayers and authorities while creating a better structured economic system.
In addition, the reforms should make it possible to reduce the budget deficit to 4% in 2024, and bring it down to 3% in 2026. Public debt should stabilize at 69.5% of GDP, which will provide Morocco with a stronger fiscal position to support development and attract investment. He specified that these reforms reflect the vision of a robust and transparent tax system, capable of responding to national priorities while reducing social and economic disparities.
On another aspect, the government has deployed measures to reduce the tax burden on low- and middle-income households. Starting this year, salaries below 6,000 dirhams per month will be exempt from income tax. Households earning less than 15,000 DH monthly will benefit from the largest share of the 8.5 billion DH in relief, planned as part of this reform.
Concerning retirees, the 2025 Finance Law was marked by the resolution of long-standing problems concerning income tax. Nearly 165,000 retired civil servants, or 86% of public sector retirees, are now completely exempt from this tax.
Maryem Ouazzani / ECO Inspirations
