Morocco's 2027 Finance Bill proposes tax cuts and higher social spending

Morocco plans to cut income taxes for employees, raise minimum pensions and increase direct social assistance under its 2027 Finance Bill. Economy and Finance Minister Fouzi Lekjaa announced the measures on Friday during a presentation before Parliament.

The reform will exempt employees earning less than MAD 10,000 per month from income tax starting January 1, 2027. The annual net income threshold exempt from tax will rise from MAD 40,000 to MAD 60,000, while taxable brackets will be reduced from five to three with progressive rates of 10%, 20% and 30%. The highest income tax rate will fall from 37% to 30%.

“The government has honored its commitments from the first finance bill presented during its term.”

The minimum monthly pension will increase from around MAD 1,000 to MAD 1,700 starting January 1, 2027, benefiting approximately 500,000 retirees including more than 150,000 widows. The pension rate granted to widows will be doubled.

Minimum monthly direct social assistance will rise from MAD 500 to MAD 600, with electricity bills of MAD 100 or less covered for around six million customers. The government will allocate MAD 6 billion to programs targeting youth employment, training and business support.

Lekjaa estimated the global impact of implementing social priorities at approximately 62 billion dirhams. The government expects tax benefits to increase gradually, with monthly gains projected to reach MAD 1,186 for employees earning MAD 11,800 per month by 2031.