Moroccan tax settlements yield impressive results: MAD 127 billion collected

The latest update on Morocco’s “Voluntary Tax Settlement Program” for individuals demonstrated impressive results, confirmed Mustapha Baitas, the government spokesperson and Minister Delegate in charge of parliamentary affairs.

Speaking at a weekly press briefing after the government council meeting, the minister emphasized that the initiative has led to declarations exceeding MAD 127 billion, with more than MAD 6 billion in tax revenues flowing into the state treasury.

Baitas said the initiative was designed to encourage taxpayers to voluntarily declare and settle any previously undeclared taxable income and profits before January 1, 2025. He highlighted that the results far exceeded expectations, with over MAD 127 billion declared.

Baitas emphasized that these figures underline the program’s success in building trust between taxpayers and the tax administration, boosting compliance, and providing vital financial resources to strengthen the economy’s financing capacity.

He added that the tax revenues have significantly bolstered the state treasury, bringing in over MAD 6 billion.

The Minister described Morocco’s economic performance in 2024 as highly positive, announcing that the budget deficit for 2024 is expected to level off at 4%, an improvement from the 4.3% recorded in 2023. He affirmed that “the government will continue to work to achieve this commitment.”

Baitas explained that this improvement is due to a significant increase in ordinary revenues, which grew by more than 47.4 billion MAD—a 14.6% rise compared to 2023—reaching MAD 371.6 billion in 2024.

He noted that this growth was driven primarily by higher tax revenues, which totaled 35.9 billion MAD, up 13.6% from 2023.

Value-Added Tax revenues alone exceeded MAD 12 billion, with MAD 6 billion coming from import-related VAT. Income tax revenues climbed to MAD 9 billion, while corporate tax revenues increased by around MAD 8 billion. Domestic consumption taxes rose by roughly MAD 3.7 billion. Also, registration fees added MAD 1.5 billion, and customs duties brought in another MAD 1.4 billion.