Morocco Increases VAT Allocations to Local Authorities, Boosting Municipal Investment in 2025

• Morocco increased the share of VAT revenues allocated to local authorities in 2025, with gains of 10% to 15% depending on local conditions.
• The 2025 Finance Law raises the VAT share for territorial collectivities by two percentage points to 32%.
• Around $543 million per year from VAT revenues now finance municipal investment projects nationwide.
• Direct state support for local authorities with budget shortfalls will exceed $65 million in 2025.
• New regulations allow local authorities access to advanced financing tools and environmental funding mechanisms.

Source: moroccoworldnews.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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