Morocco’s Customs Revenue Plunges 10% Amid COVID-19 Crisis

The current health crisis has impacted all sectors without distinction. Thus, customs revenue reached 91.3 billion dirhams (MMDH) in 2020, a drop of 9.7 MMDH or 10% compared to 2019, according to the Customs and Indirect Taxes Administration (ADII) in its 2020 annual report, published on Tuesday, May 11, while expressing satisfaction with this result, which is above the forecasts of the 2020 supplementary finance law by more than 7.2%, or +6.13 billion dirhams. Of the total budget revenue, Value Added Tax (VAT) accounts for 57%, Domestic Consumption Tax (TIC) 32%, and Import Duty (DI) 11%.

As for DI revenue, it has reached +2.2% over the past five years, despite a 2% drop in 2020. VAT revenue over the same period has reached an increase of nearly 2.3% despite a 13% drop in 2020. At the same time, the TIC recorded an increase of 5% after a contraction of 8.4% in 2020, the report added, noting that the pipeline royalty continued its plunge in 2020, with a 55% drop, or a 1% share of budget revenue.

It should be noted that despite the pandemic and its negative impact on imports, revenue from additional duties and taxes reached 4.45 MMDH, an increase of 24% compared to 2019. Among the achievements are the adjustments after value control, which represent the major source of revenue at over 84%, the report stressed.