Morocco exceeds tax revenue targets by 10%, boosting 2024 budget performance

Budget Minister Faouzi Lakjaa, in a presentation to the House of Councillors on Tuesday about the 2024 finance law’s implementation, announced that tax revenues reached 110.8% of projections, while non-tax revenues achieved 104% of their target.

Presenting to the Finance, Planning, and Economic Development Committee, Lekjaa revealed that tax revenues are up MAD 37.6 billion compared to the same period in 2023.

This increase is attributed to growth across multiple sectors, including income tax, which rose by MAD 9.5 billion, corporate tax up by MAD 8.4 billion, domestic value-added tax up by MAD 6.1 billion, import value-added tax up by MAD 6.3 billion, internal consumption tax up by MAD 3.7 billion, customs duties up by MAD 1.4 billion, and registration and stamp duties up by MAD 1.5 billion.

He also highlighted the overall revenue growth between 2020 and 2024, noting a MAD 143.5 billion increase in ordinary revenues and a MAD 101.4 billion increase in tax revenues. This translates to an average annual growth rate for tax revenues of 7.9% between 2020 and 2021, and 11.9% between 2021 and 2024.

Regarding the 2024 voluntary tax compliance program, Lekjaa noted a 5% contribution rate on declared assets and expenditures.

He stated the program significantly exceeded initial expectations, generating MAD 125 billion, including MAD 77 billion from bank declarations and MAD 48 billion from direct declarations to the General Tax Directorate by nearly 8,000 taxpayers. This initiative bolstered state resources by an estimated MAD  6 billion.

The Minister Delegate noted that, by December 2024, current expenditures reached 100.9% of the target, while spending on goods and services dropped by MAD 5.5 billion, or 6.1%, due to efforts in rationalizing management expenses.

Compared to the same period in 2023, current expenditures increased by about MAD 16.4 billion, or 5.6%, driven by a MAD 10 billion rise in social dialogue expenses and an additional MAD 5 billion for regional education academies and social protection funds. Investment spending also rose by MAD 6.6 billion, or 6%.

He also highlighted that the positive revenue performance, especially from taxes, alongside controlled spending, helped reduce the budget deficit to 3.9% in 2024, compared to 4.4% in 2023 and 5.4% in 2022.