Casablanca – Morocco’s tax revenues reached an impressive $30.9 billion in 2024, representing a significant increase of 14.3% compared to the previous year. This positive performance highlights the country’s continued efforts to strengthen its public finances, driven by fiscal reforms and improved economic activity.

According to the Ministry of Economy and Finance, these revenues achieved 110.8% of the targets set in the Finance Law, underscoring the effectiveness of the government’s strategies to boost tax collection. The document, which details the performance of the Treasury’s finances, also reported net tax refunds, adjustments, and reimbursements, including those covered by local authorities, totaling $2.4 billion.

Tax reforms and measures driving growth

This remarkable rise in tax revenues is largely attributed to the ongoing implementation of the framework law for tax reform. The reform aimed to expand the tax base, promote greater fiscal fairness, and enhance oversight to ensure better compliance.

Key measures that contributed to this success include the introduction of withholding taxes on certain income, the adoption of VAT self-assessment, and the gradual extension of VAT across different sectors. Additionally, the rationalization of tax incentives and the establishment of a voluntary tax regularization program, as outlined in the 2024 Finance Law, played a crucial role in improving the country’s tax collection.

The government’s efforts to expand the scope of the tax system have helped include more businesses and individuals, which in turn boosted overall tax receipts. The measures not only increased compliance but also ensured that more sectors contributed to national revenues, strengthening Morocco’s fiscal position.

Corporate tax sees significant increase

Corporate tax revenues saw one of the most notable increases, with a growth rate of 13.5%, reaching $7.2 billion. This growth was largely driven by higher revenues from tax settlements, which increased by $227 million, as well as higher advance payments (+$484 million) and revenues from administrative actions (+$72 million). The increase in corporate tax reflects a recovery in business activity and improved collection efficiency.

Income tax performance strong

Income tax revenues also showed strong growth, with a total increase of $979 million, surpassing expectations with a realization rate of 114%. The boost was driven by higher revenues from individual income taxes on salaries, which grew by $247 million, and from property income, which saw a rise of $62 million. Additionally, withholding taxes on capital gains and fixed-income investments contributed an additional $82 million to the increase, reflecting improved performance in both labor and financial markets.

This growth in income tax highlights the country’s growing middle class and the government’s success in ensuring that both individuals and businesses contribute fairly to public finances.

VAT collection on the rise

Another key area of growth was the Value Added Tax (VAT), which saw an increase of $1.28 billion in 2024. VAT revenues were boosted by a 13% rise in imports and domestic transactions, with the import-related VAT contributing an additional $649 million, and domestic VAT rising by $630 million.

The increase in VAT collection reflects both a recovery in consumption and the success of the Finance Law measures, which stimulated economic activity and consumption. The government’s efforts to improve tax compliance and simplify VAT procedures also contributed to the positive outcome.

Other tax revenues show solid performance

The government also reported strong results in other taxes. Revenues from domestic consumption taxes (TIC) grew by $381 million, driven mainly by increases in taxes on energy products, which rose by $196 million, and tobacco products, which saw an increase of $114 million.

Customs duties also performed well, with an increase of $145 million, reflecting the growth in trade activity. Additionally, registration and stamp duties rose by $154 million, primarily due to higher revenues from registration fees, which grew by $134 million.

A positive outlook for morocco’s fiscal health

Overall, the tax revenue performance in 2024 demonstrates that Morocco is making solid progress in improving its public finances. The government’s fiscal reforms and enhanced tax compliance have contributed significantly to this positive outcome. The figures indicate that Morocco is on the right track to ensure sustainable public finances and reduce its budget deficit.

As the country moves forward, the continued implementation of tax reforms and measures aimed at broadening the tax base will be crucial in maintaining this upward trajectory. By strengthening its tax system and improving compliance, Morocco is not only securing its fiscal future but also providing the necessary resources to support its development goals.

The impressive growth in tax revenues is a testament to the government’s commitment to fiscal discipline, and it sets a positive tone for the country’s economic outlook in the years to come.