Morocco’s tax revenue in 2020 exceed what was expected

Morocco’s fiscal revenues exceeded the expectations set in the budget law standing at 146 billion dirhams, or 107% of the revenues projected in the budget law.

Tax revenues were only 4% lower compared to last year in a difficult economic context marked by the fallout of the pandemic on economic activity and tax breaks offered by the government to offset the crisis.

Medias 24, an economic website, explained this performance by an improvement in the fiscal administration’s tax collection procedures.

Economists however predict that in 2020, the administration collected taxes for the 2019 exercise and that the effect of the pandemic on fiscal revenues will rather be felt in 2021.

Meanwhile, the incentives offered by the foreign exchange regulator for Moroccan individuals to repatriate cash held abroad and declare assets has injected 6 billion dirhams in Moroccan banks.

Morocco’s budget deficit is expected to stand at 7.5% this year as the government stepped up spending to mitigate the impact of the pandemic.