Morocco's Tax Program Nets MAD 6 Billion in Treasury Funds

Morocco's voluntary asset disclosure initiative has generated MAD 6 billion for the public treasury from declared assets totaling MAD 127 billion, according to government spokesperson Mustapha Baitas during a Thursday press conference.

The program has successfully strengthened relationships between tax authorities and taxpayers while promoting increased fiscal compliance. This initiative has provided crucial financial resources to support Morocco's economic growth and funding requirements.

The country's fiscal outlook shows notable improvement, with the budget deficit projected to decrease to 4% of GDP in 2024, down from 4.3% in 2023. This positive trend is attributed to a significant 14.6% increase in ordinary revenues, reaching MAD 371.6 billion—representing a MAD 47.4 billion rise.

Tax collection demonstrated robust growth across multiple categories. The value-added tax (VAT) contributed an additional MAD 12 billion, distributed equally between imports and domestic transactions. Income tax revenue increased by MAD 9 billion, while corporate tax generated an extra MAD 8 billion. Consumption taxes rose by MAD 3.7 billion, with registration and customs duties adding MAD 1.5 billion and MAD 1.4 billion, respectively. These improvements helped offset a 5.5% increase in government expenditure, which grew by MAD 22.2 billion compared to 2023.

To address inflation concerns, the government has implemented a MAD 1 billion subsidy program targeting essential food items, including fertilizers, wheat, barley, and livestock. Total subsidies for basic commodities reached MAD 25.4 billion.

Investment spending maintained upward momentum, growing by MAD 5.3 billion (4.7%) to reach MAD 116 billion. In the public sector, MAD 13.8 billion was allocated for salary increases benefiting 1.027 million employees, including doctors, academic researchers, magistrates, and healthcare workers. The government also provided MAD 4 billion to support the National Electricity Office and extended financial assistance to the transport sector.

While these developments signal positive economic management, the public debt level remains at 69.5% of GDP, prompting ongoing discussions about fiscal policy effectiveness.