Morocco’s tax revenues surge 19.1% in first half of 2025

Morocco’s tax revenues rose by 19.1% in the first half of 2025, reaching 186.34 billion dirhams (MMDH), driven primarily by corporate income tax (IS) receipts, which soared 34.7% to 55.98 MMDH. This increase is largely attributed to payments linked to the 2024 fiscal year, the reference year for provisional installments.

The rise comes despite a gradual reduction of the standard corporate tax rate, set to drop to 20% by 2026. Personal income tax (IR) revenues also jumped 22.6% to 36.54 MMDH, supported by wage increases in the public sector from July 2024, the private sector from January 2025, and agriculture from April 2025. This occurred alongside a reduction of the top marginal rate from 38% to 37% and partial pension tax exemptions.

Indirect taxes climbed 11.8% to 71.36 MMDH. Domestic consumption taxes (TIC) reached 17.99 MMDH, with tobacco duties up 20.6% and energy duties rising 11.9%. VAT, the state’s largest revenue source, totaled 53.37 MMDH, up 10.7%, with domestic VAT rising faster than import VAT. Registration and stamp duties grew 4.9% to nearly 12 MMDH.

By June 2025, 56.5% of annual tax collection targets were met. Authorities expect stronger enforcement in the second half of the year, particularly from September, as fiscal audits intensify to curb tax evasion and ensure both efficiency and fairness.