Photo: Morocco World News
Morocco recorded a robust increase in tax revenues over the first eleven months of 2025, marking one of the country’s strongest fiscal performances in recent years. According to the latest Situation des Charges et Ressources du Trésor report published by the Ministry of Economy and Finance, fiscal revenues reached MAD 301.9 billion by the end of November, representing a year-on-year increase of 14.5%.
The surge reflects a combination of stronger economic activity and improved tax collection. Economic growth accelerated during 2025, supported by resilient domestic demand and higher investment, alongside positive performance in agriculture, industry, tourism, and construction.
Macroeconomic backdrop and inflation
The broader economic environment was supportive of revenue growth. Inflation remained contained, averaging around 0.8% over the first eleven months of the year, down from 1.1% in the same period of 2024. This helped sustain household consumption and business activity, directly feeding into higher tax receipts.
Total budget revenues increased by MAD 42.6 billion year on year, while fiscal revenues alone rose by MAD 38.2 billion. Tax collection reached 94.3% of the targets set out in the 2025 finance law, highlighting strong budget execution.
Corporate and personal income taxes lead
Corporate income tax was the main driver of revenue growth. Receipts from corporate tax rose by nearly 29%, generating an additional MAD 16.9 billion compared with November 2024. The increase was largely attributed to higher regularisation payments and stronger advance installments, reflecting improved profitability across parts of the corporate sector.
Personal income tax also posted solid gains, rising by 14.6% or MAD 7.7 billion. According to the report, this performance was supported by a voluntary tax regularisation campaign, enhanced tax administration efforts, and higher withholding on capital gains from securities.
VAT and indirect taxes
Value-added tax revenues grew at a more moderate but still healthy pace, increasing by 9.7% overall. VAT collected on imports rose by 7.5%, while domestic VAT increased by more than 14%, pointing to resilient internal consumption.
Taxes on domestic consumption, particularly on energy products and tobacco, also contributed positively, with combined growth of around 13%. By contrast, customs duties declined by 5.5% following the removal of import tariffs on certain agricultural products, including cattle and sheep, under the 2025 finance law. Registration and stamp duties, however, increased by more than 10%, supported by higher transaction volumes.
Budget balance under pressure
Despite the strong revenue performance, the Treasury’s budget balance remains under strain. The fiscal deficit widened to MAD 71.6 billion by the end of November, as expenditure growth outpaced revenue gains. Ordinary spending increased sharply, driven by higher wage costs, transfers, and debt servicing, even as compensation spending declined.
As reported by International Investment experts, Morocco’s revenue rebound in 2025 underscores the resilience of its economy and the effectiveness of tax collection measures. At the same time, the widening deficit highlights the ongoing challenge of aligning expenditure growth with rising revenues to ensure long-term fiscal sustainability.