Casablanca – Despite economic fluctuations, Morocco’s fiscal landscape as of May 2024 reveals robust VAT revenues, underscoring its pivotal role as the leading income source for the state budget. Net VAT collections amounted to $3.87 billion, comprising $2.38 billion from import VAT and $1.49 billion from domestic VAT, marking significant contributions to government finances amid ongoing economic adjustments. Comparisons with the previous year highlight a 13.6% increase in gross revenues, driven by gains in customs revenues and adjustments in internal taxation policies. These insights are detailed in the latest monthly bulletin of public finance statistics from the Kingdom’s General Treasury, reflecting pivotal fiscal trends shaping Morocco’s economic trajectory.

Comparing May 2024 to the same period in 2023, the implementation of the budget law showed a 13.6% increase in gross revenues. This growth was driven by a 9.5% rise in net customs revenues, taking into account tax refunds, exemptions, and reimbursements totaling $5.15 million by May 2024, up from $3.09 million a year earlier.

Furthermore, there was a 1.1% decline in the internal consumption tax (ICT) on manufactured tobacco and a notable 21.2% increase in other ICTs. Net revenues from domestic taxation increased by 14.8%, with tax refunds, exemptions, and reimbursements supported by the general budget amounting to $486.24 million by May 2024, compared to $471.96 million a year earlier. Non-tax revenues surged by 26.2%, driven by increased transfers from special Treasury accounts to the general budget ($768.56 million vs. $724.43 million), higher monopoly revenues ($388.66 million vs. $305.36 million), and revenues mitigating debt expenditures ($256.60 million vs. $51.96 million), despite a decrease in funding contributions ($57.11 million vs. $100.21 million).

Regarding VAT revenues, net import VAT revenues reached $2.38 billion by the end of May 2024, up from $2.22 billion in May 2023, reflecting a 7.2% increase or +$158 million. VAT on energy products saw a decrease of 8.2% or -$37 million, while VAT on other products rose by 11.2% or +$196 million.

Moreover, net revenues generated by domestic VAT reached $1.49 billion by the end of May 2024, compared to $1.10 billion in May 2023, showing a 35.7% increase or +$381 million, considering refunds supported by the general budget amounting to $311 million by May 2024, down from $341 million the previous year. It is noted that as of December 2023, outstanding VAT refunds amounted to $3.39 billion.

These figures, reported in the monthly bulletin of public finance statistics from the Kingdom’s General Treasury for May 2024, underscore the fiscal trends and adjustments affecting Morocco’s economic landscape as the year progresses.