MOROCCO · TAX POLICY
Key Facts
- —The country Morocco is a North African kingdom with a free trade agreement with the United States, in force since 2006, and a major port at Tanger Med.
- —What happened A report attached to the 2027 Finance Bill puts Morocco tax exemptions at 38.015 billion dirhams (about US$3.9 billion) for 2026, according to Al Yaoum 24.
- —The numbers That is 13.7% above 33.426 billion dirhams (about US$3.4 billion) in 2025, a rise of 4.589 billion dirhams (about US$468 million) across 283 measures.
- —The driver Customs duties explain 2.859 billion dirhams (about US$291 million) of the increase, followed by value-added tax at 787 million dirhams (about US$80 million).
- —Who benefits Households receive 18.534 billion dirhams (about US$1.9 billion), or 48.8% of the total, and companies 17.53 billion dirhams (about US$1.8 billion), or 46.1%.
- —The government The cabinet of Fatima Ezzahra El Mansouri adopted the 2027 bill on Tuesday 20 October 2026.
- —Still open Parliament has not voted on the bill, and no date for the vote has been announced.
Morocco tax exemptions reached 38 billion dirhams (about US$3.9 billion) in 2026, up 13.7% from 33.4 billion dirhams (about US$3.4 billion) in 2025. The report attached to the 2027 Finance Bill shows it, as the Moroccan news site Al Yaoum 24 reported on Saturday 24 October 2026.
For US readers, Morocco tax exemptions show how much revenue a close trade partner gives up to support households, farmers and firms. Customs duties, not income tax, account for the largest part of the increase.
What the Report Shows on Morocco Tax Exemptions
Tax expenditures are the revenue a state gives up by exempting or reducing tax for certain people, goods or activities. The report counts 283 such measures in 2026, up from 274 in 2025.
Their combined cost rose from 33.426 billion dirhams (about US$3.4 billion) to 38.015 billion dirhams (about US$3.9 billion), a gain of 13.7%. Morocco publishes the calculation each year in a report attached to the budget bill.
Where the Extra Money Went
Customs duties added 2.859 billion dirhams (about US$291 million) to the cost, the largest single driver of the increase. Value-added tax added 787 million dirhams (about US$80 million).
Income tax breaks added 692 million dirhams (about US$71 million), and the tax on insurance contracts added 387 million dirhams (about US$39 million). Breaks tied to internal consumption duties fell by 73 million dirhams (about US$7 million).
Corporate tax breaks fell by 63 million dirhams (about US$6 million) and registration fees by 17 million dirhams (about US$1.7 million). Together the three declines of 153 million dirhams (about US$16 million) are small beside the rises.
Who Benefits Most
Households took the largest share of Morocco tax exemptions in 2026, at 18.534 billion dirhams (about US$1.9 billion), or 48.8%. Companies followed with 17.53 billion dirhams (about US$1.8 billion), or 46.1%.
Wage earners benefit from 4.941 billion dirhams (about US$503 million) of breaks, against 4.568 billion dirhams (about US$465 million) a year earlier. Farmers receive 2.128 billion dirhams (about US$217 million), up from 1.794 billion dirhams (about US$183 million).
Fishers saw their breaks fall from 1.043 billion dirhams (about US$106 million) to 961 million dirhams (about US$98 million). Property developers dropped from 844 million dirhams (about US$86 million) to 693 million dirhams (about US$71 million).
Full Exemptions and Reductions
Full exemptions, where a person or product pays no tax, make up 26.746 billion dirhams (about US$2.7 billion), or 70.4% of the total. That compares with 24.291 billion dirhams (about US$2.5 billion) in 2025.
Tax reductions, where a lower rate applies, come second at 8.41 billion dirhams (about US$857 million), or 22.1% of the total. In 2025 they stood at 6.379 billion dirhams (about US$650 million).
The Politics Behind the Number
The report covers 2026, a year that began under the outgoing government of Aziz Akhannouch. Fatima Ezzahra El Mansouri, who now heads the government after the September elections, chaired the cabinet that adopted the 2027 bill on 20 October.
Fouzi Lekjaa, the Economy and Finance Minister, presented the text, known as Finance Bill 60.26, as reported by Hespress. Le360 carried an L’Économiste review on 23 September saying the budget guidelines write tax guarantees for the 2030 World Cup into law.
The same budget already carries other tax stories, including a reported income tax cut for workers. It also lifts the ceiling for advance arms orders, as our report on the arms buying cap explains.
What It Means for US Readers
Morocco tax exemptions mean about US$3.9 billion in revenue given up in 2026 to support households, farmers and investment. US firms that sell to Moroccan consumers or invest in Morocco should check which of the 283 measures apply to them.
The US-Morocco free trade agreement, in force since 2006, already removes most duties on American goods. Customs breaks added the most to the 2026 cost, though the products behind the rise are not listed in the figures reported so far.
What Is Not Known
Parliament has not set a date to vote on the 2027 bill, so Morocco tax exemptions and any new breaks could still change. The reported totals do not split the 13.7% rise between new measures and higher estimates for existing ones.
A year ago the 2025 cost was reported at 32.015 billion dirhams (about US$3.3 billion). It now stands at 33.426 billion dirhams (about US$3.4 billion), and the reason for the revision has not been given.
More: Morocco news in English, every day from The Rio Times.
Frequently Asked Questions
How much are Morocco’s tax exemptions in 2026?
They total 38.015 billion dirhams (about US$3.9 billion), according to the report attached to the 2027 Finance Bill, as reported by Al Yaoum 24. That is 13.7% more than the 33.426 billion dirhams (about US$3.4 billion) counted for 2025.
What are tax expenditures?
They are the tax revenue a government gives up by exempting or reducing tax for certain people, goods or activities. Morocco counts 283 such measures in 2026.
What drove the 13.7% increase in Morocco tax exemptions?
Customs duties added 2.859 billion dirhams (about US$291 million), the largest part of the rise. Value-added tax added 787 million dirhams (about US$80 million) and income tax 692 million dirhams (about US$71 million).
Who benefits most from the exemptions?
Households receive 48.8% of the total, or 18.534 billion dirhams (about US$1.9 billion). Companies receive 46.1%, or 17.53 billion dirhams (about US$1.8 billion).
Has Parliament approved the 2027 budget?
No. The cabinet adopted the draft on Tuesday 20 October 2026, and Parliament has yet to vote on it.
Which exchange rate converts the dirham amounts?
Conversions use 9.81 dirhams to the US dollar, the market rate on 24 October 2026. All dollar values are rounded.
Sources: Al Yaoum 24, tax exemptions in the 2027 Finance Bill report, 24 October 2026; Hespress, cabinet adopts the 2027 Finance Bill, 20 October 2026; Hespress, tax expenditures in the 2026 Finance Bill, 30 October 2025; Le360, what to retain from the 2027 budget guidelines, 23 September 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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