Casablanca – Morocco’s tax revenues grew by 12.5% year-on-year, totaling $25.14 billion by the end of October 2024, according to a report from the Ministry of Economy and Finance. The growth represents an increase of $2.79 billion compared to the same period in 2023 and accounts for 90% of the annual target set in the Finance Act. Tax refunds, exemptions, and reimbursements also rose significantly, amounting to $2.02 billion, up from $1.4 billion a year earlier.

Corporate tax revenues increased by $670 million, achieving 95.4% of the forecasted total. This growth was attributed to higher receipts from the first three installments, which added $310 million, regularization supplements, which contributed $237 million, and withholding taxes on fixed-income investments and third-party payments, which brought in $93 million.

Income tax revenues rose by $610 million, reaching a realization rate of 91.6%. The increase was mainly driven by a rise in taxes on salaries, which added $206 million, property profit taxes, which grew by $52 million, and withholding taxes on investment income and securities sales profits, which contributed $72 million.

VAT revenues experienced significant growth, climbing by $840 million and achieving 84% of the target. Import VAT rose by 12.1%, while domestic VAT expanded by 13.2%, reflecting stronger consumption and the impact of measures introduced in the 2024 Finance Act.

Domestic consumption taxes increased by $320 million, with a realization rate of 91.3%. This growth was driven by a rise in taxes on energy products by 12.6%, tobacco taxes by 7.3%, and taxes on other goods by 26.6%. Customs revenues rose by $206 million, achieving 96.4% of the annual target. Meanwhile, registration and stamp duties grew by $103 million, reaching a realization rate of 91%, with higher registration fees contributing $72 million, increased insurance taxes adding $15 million, and stamp duties growing by $13 million.

The report also highlighted a financing need of $5.39 billion by the end of October, up from $4.92 billion in the same period a year earlier. To meet this need, the government raised $5.54 billion through domestic borrowing and $567 million via external loans. Domestically, bonds worth $17.77 billion were issued while $12.23 billion was repaid in principal. External debt activity included $2.57 billion in disbursements and $2 billion in repayments. The Treasury’s Income and Expenditure Report (SCRT) provides a detailed view of Morocco’s fiscal performance. It incorporates international standards for public finance statistics and examines key metrics, including revenues, expenditures, investment spending, budget deficits, and financing strategies. This growth in tax revenues underlines Morocco’s economic recovery and the positive impact of its fiscal policies, supported by improved consumption and effective tax collection measures in 2024.