Moroccan Tax Revenues Surge 11.8% in First Quarter, Boosting Government Finances

These revenues show 63.5 billion dirhams in the first quarter, an increase of 11.8%, reports the newspaper l’Economiste. These performances are explained by the good income from direct and indirect taxes, but also from the expenditure side which, although it has increased, only shows "6.6%" at 58.6 billion dirhams. However, compensation fund expenditures are up sharply by 36.8%, while public investment has seen an increase of 10%.

In detail, state revenues come from the increase in VAT on imports, domestic consumption taxes (TIC), customs revenues and automotive taxation. "Taxes on domestic consumption have seen a sharp increase. The one applied to energy products jumped by more than 16% while the TIC on tobacco exploded by 39%. The other TICs are not left out. They increased by nearly 8%".

As for the revenues from the income tax (IR), they increased by 9.2% to 11.5 billion dirhams, while the IS experienced a decline of 0.4% after having experienced a drop of 17%, recalls the economic newspaper.

As for expenditure, it is explained by a 3.4% increase in the purchase of goods and services, mainly "other goods and services" which jumped by 8.2% to 18.1 billion dirhams. VAT refunds during the same period amounted to 2.7 billion dirhams, while investments amounted to 21.3 billion dirhams.