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Moroccan Local Governments' Tax Revenue Jumps 8.6% in H1 2026

The Treasury General of the Kingdom (TGR) reports that local government tax collections reached 25.24 billion dirhams by the end of June 2026, up 8.6 % from the same period a year earlier. The growth is driven by higher direct taxes (7.6 %) and indirect taxes (9.5 %), with the value‑added tax share now representing 41.8 % of local revenues.

July 27th, 2026
2 min read
By boursenews.ma

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Overview of H1 2026 Fiscal Performance

According to the Treasury General of the Kingdom (TGR), local authorities collected 25.24 billion dirhams in taxes by the end of June 2026, marking an 8.6 % increase over June 2025.

Key Drivers of the Rise

  • Direct taxes grew by 7.6 %.
  • Indirect taxes rose by 9.5 %.

Tax revenue now represents 88.8 % of total local‑government receipts.

Transfers and Grants

State‑allocated resources fell slightly to 16.05 billion dirhams, a 0.3 % decline. The drop is mainly due to:

  • Subsidies down 64.7 % (‑622 million dirhams).
  • Competitiveness funds down 33 % (‑438 million dirhams).
  • Complete removal of the insurance‑contract tax share (‑329 million dirhams).
  • However, the local share of VAT increased by 14.1 %, adding 1.462 billion dirhams.

VAT now accounts for 41.8 % of local revenues.

State‑Managed Resources

Resources managed by the State on behalf of local authorities reached 6.15 billion dirhams, up 0.6 %. The uplift stems from a 4.2 % rise in the municipal services tax (+168 million dirhams), offset by declines in professional tax (‑87 million) and residence tax (‑44 million).

Locally‑Managed Revenues

Revenues directly managed by local entities hit 6.20 billion dirhams, an 18.9 % jump from the previous year. The main components are:

  • Urban undeveloped land tax: 2.62 billion dirhams.
  • Temporary occupation fee of communal public domain: 599 million dirhams.
  • Construction operation tax: 511 million dirhams.
  • Domainal revenues: 429 million dirhams.

These figures highlight a robust fiscal footing for Moroccan local governments heading into the second half of 2026.

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