Morocco introduces measures in its 2025 budget to curb inflation

The draft budget for 2025 provides for an array of measures to curb the impact of imported inflation on the citizens’ purchasing power, including wage hikes, cancelation of VAT and customs duties on some basic foodstuff, and subsidies.

Under the new budget, monthly salaries lower than 6000 will be exempted from the income tax, while other wage brackets will increase as a result of a drop in the same tax.

As part of a deal with key labor Unions, Morocco will spend 1 billion dollars on wage hikes within the framework of the “social dialogue.”

As food prices remain the main driver of inflation in the country, Morocco will cancel from January to December 2025 the value added tax and customs duty on all cattle imports (beef, sheep, goats and camel) as well as their red meat in addition to brown sugar and olive oil.

Inflation eased in September to 0.8% but last year prices surged due to disruption of supply chains. The government expects inflation to stand at 2% next year.

Morocco will also allocate 1.6 billion dollars to subsidies of flour, cooking gas and sugar.

The government’s spending on social housing aid has so far benefited 25,000 households, as it plans to continue supporting access to housing.

Financial assistance to needy households will also increase as the government also plans a generalization of the pension system.