The draft finance law No. 60.24 for the fiscal year 2025 reveals a strong government focus on enhancing tax revenues. The plan includes increasing public spending and investment, with a projected reduction of the budget deficit to 3.5% of GDP, down by 0.5 points annually. The government is relying on internal taxes on alcohol and tobacco products to boost public revenues by 14.49% next year, reaching a total of 657.8 billion dirhams.
The new finance bill anticipates revenue of approximately 1.19 billion dirhams from internal taxes on alcohol consumption and 1.55 billion dirhams from beer consumption, alongside 13.7 billion dirhams from manufactured tobacco. The projected total revenue from smokers and drinkers is estimated at over 16.44 billion dirhams.
To ensure stable funding and avoid collection disruptions, the government is focusing on fixed tax sources, particularly consumption taxes, targeting heavily consumed products like cigarettes. The bill plans to collect 12.5 billion dirhams from tobacco for the current year and forecasts 13.7 billion dirhams for the next.
This financial project has raised concerns about the reliance on tobacco tax revenue, which now constitutes nearly double the estimated income from the OCP Group, Morocco’s largest income source. The financial document reports a revenue gap of 6.2 billion dirhams between these two sources.
The draft finance law, currently under discussion in the House of Representatives, anticipates total tax and non-tax revenues of 368 billion dirhams, an 18.47% increase driven by various revenue sources, with taxes accounting for 80% of this total. The government is also counting on over 16.5 billion dirhams in profits from state-owned enterprises, with significant contributions from the OCP Group and other public institutions.
