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Tax revenues in Morocco have risen sharply over the last four years, climbing from USD 19.5 billion in 2020 to USD 29.5 billion in 2024. An 11% annual increase in tax revenues, driven by improvements across major tax categories.
Fouzi Lekjaa, Minister Delegate to the Minister of Economy and Finance in charge of the Budget, attributes this growth to fiscal reforms aimed at addressing social and economic needs. Lekjaa noted that this additional USD 9.9 billion was dedicated entirely to social programs. He explained that USD 4.3 billion supported social dialogue, USD 3.4 billion was allocated to direct financial aid, and USD 1.9 billion helped cover medical insurance contributions.
Lekjaa pointed to an 11% annual increase in tax revenues, driven by improvements across major tax categories. Corporate tax collections grew from USD 4.8 billion to USD 6.9 billion in 2024, while VAT revenue rose from USD 5.5 billion to over USD 8.8 billion, marking a 59% rise. Income tax collections also saw a major jump, increasing from USD 3.9 billion to USD 5.9 billion, a 49% improvement.
This growth stemmed from expanding the tax base to include independent professionals and non-salaried income, areas previously under-taxed. Lekjaa detailed new measures set to ease the tax burden on low and middle-income households. Starting in 2025, salaries below USD 590 per month will be exempt from income tax.
Households earning less than USD 1,470 per month will benefit from the majority of the USD 830 million in relief allocated under this reform.For retirees, Lekjaa announced a resolution to long-standing income tax issues. Nearly 165,000 retired civil servants, representing 86% of the public-sector pensioners—are now fully exempt from income tax.
The government is working to simplify tax procedures and align them with the realities of Morocco’s economy. Measures such as the Unified Professional Contribution aim to reduce administrative hurdles for small and medium-sized businesses.
To address tax evasion, authorities introduced broader withholding tax policies and strengthened fiscal controls. These actions led to an increase in revenue, from USD 1.4 billion in 2023 to USD 1.8 billion in 2024, a 26% rise. Lekjaa outlined the results of a voluntary tax compliance initiative, which brought in USD 12.5 billion. Of this amount, USD 7.6 billion came from bank declarations, USD 4.7 billion from direct declarations, and USD 200 million from assets held abroad.
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The Minister described this initiative as part of a broader strategy to build trust between taxpayers and authorities while creating a more structured economic system. The reforms are expected to lower the budget deficit to 4% in 2024, with plans to reduce it further to 3% by 2026. Public debt is projected to stabilize at 69.5% of GDP, providing Morocco with a stronger fiscal position to support development and attract investment. These reforms reflect a vision of a robust and transparent fiscal system, capable of meeting national priorities while reducing social and economic disparities.
