Morocco Unveils Tax Reforms for 2025 Budget

These measures mainly concern the reform of income tax (IR) and value added tax (VAT), as well as customs duties and the domestic consumption tax, Lekjaa revealed during his presentation before the Finance, Planning and Economic Development Committee. Regarding the IR reform, the minister recalled the upward revision of the first bracket of the progressive tax rate scale from 30,000 dirhams to 40,000 dirhams, which will exempt monthly incomes below 6,000 dirhams.

The Delegate Minister added that the other brackets of the scale have also seen a reduction in tax rates, noting that the reduction for family burdens has increased from 360 to 500 dirhams per dependent person of the taxpayer. As for the amendments to the IR, they concern an increase in the amount of meal or catering vouchers offered by employers to their employees, which has increased from 30 to 40 dirhams per day and per employee, as well as the possibility of electronic payment, he continued.

A temporary measure provides for the exemption of VAT on imports of limited quantities of certain live animals and agricultural products, in order to ensure their availability on the local market at affordable prices, Lekjaa said, stressing that the minimum share of VAT revenue allocated to the budgets of local authorities has been increased from 30 to 32%. This is to improve the financing of local authorities and strengthen the dynamics of territorial development.

Amendments have also been made regarding customs measures. They relate to the exemption of local authorities from the increase applied in the event of non-payment of customs duties, taxes, fines and other amounts due electronically, the Delegate Minister stressed. Regarding customs duties, Lekjaa announced a reduction from 40 to 2.5% of the import duty applied to table honey packaged in containers of more than 20 kg, and an increase in the import duty on optical fiber cables, from 10 to 17.5%.

As for the consumption tax, the main measures relate to the introduction of a domestic consumption tax on non-rechargeable electronic cigarettes, set at 50 dirhams per unit, as well as the establishment of a new offense related to the failure to affix tax stamps on diesel and "super" gasoline when they are put into circulation. In addition, the collection of the import duty on a limited quantity of live animals and agricultural products will be suspended from January 1 to December 31, 2025. The 2025 Finance Bill was adopted by a majority of the members of the House of Councillors.