Casablanca- In a testament to Morocco’s economic resilience, tax revenues surged to new heights in 2023, according to recent disclosures by the Ministry of Economy and Finance. The revenues, amounting to 235.59 billion dirhams (approximately $ 35.16 million USD) at the end of November 2023, marked a robust 4.4 percent increase compared to the same period in the previous year.

This substantial increase in tax revenues reflects the country’s strong fiscal performance and underscores its commitment to economic development. The ministry highlighted that these revenues surpassed expectations, achieving an impressive completion rate of 92.3 percent compared to the forecasts outlined in the Finance Law for the year 2023.

Delving into the specifics, net payments, settlements, and tax refunds totaled 14.9 billion dirhams ( approximately $ 1.53 billion USD), indicating a decrease from the 16.1 billion dirhams ( approximately $ 1.65 billion USD)  recorded a year earlier. This reduction in net payments suggests a more efficient tax collection process, further contributing to the overall increase in tax revenues.

Examining the breakdown of tax types, the corporate tax boasted a completion rate of 85.3 percent, witnessing a modest increase of 190 million dirhams ( approximately $ 19.58 billion USD). Income tax, on the other hand, exhibited a robust completion rate of 96.8 percent, experiencing a substantial uptick of 2.8 billion dirhams ( approximately $ 0.28 billion USD). The impressive performance of income tax is indicative of the country’s growing economic activity and income levels.

The local value-added tax (VAT) also showcased a commendable completion rate of 95.7 percent, with revenues witnessing a significant boost of 4.3 billion dirhams ( approximately $ 0.44 billion USD). This surge in VAT revenues mirrors a recovery in household consumption expenditures, signaling improved consumer confidence and economic resilience.

However, the value-added tax applied to imports recorded a completion rate of 88.8 percent, experiencing a decline of 2 billion dirhams ( approximately $ 0.2 billion USD). This decrease is primarily attributed to a reduction in imports, which decreased by 4 percent by the end of October 2023. Additionally, measures taken to support the agricultural sector contributed to this decline in import-related VAT revenues.

Internal consumption taxes demonstrated a completion rate of 91.1 percent, with an increase of 469 million dirhams ( approximately $ 48.35 million USD). Notably, higher internal consumption taxes on tobacco and other non-energy products contributed to this growth, offsetting a decline in taxes applicable to energy products.

Furthermore, customs duties soared with a completion rate of 98.2 percent, experiencing an increase of 1.9 billion dirhams ( approximately $ 0.19 billion USD). Similarly, revenues resulting from registration and registration fees witnessed a remarkable completion rate of 113.5 percent, surging by 1.5 billion dirhams ( approximately $ 0.15 billion USD). Registration fees alone accounted for 1.1 billion dirhams ( approximately $ 1.22 billion USD), of this increase, underscoring a buoyant real estate market.

The surge in tax revenues bodes well for Morocco’s economic outlook, providing the government with additional fiscal resources to invest in key sectors such as infrastructure and social development. With prudent fiscal management and sustained economic growth, Morocco continues to solidify its position as a regional economic powerhouse.