Follow-Up on Tax Expenditures
A report on tax expenditures included in the draft budget law for 2026 reveals the government’s ongoing efforts to support economic and social actors through tax exemptions and incentives, with total support expected to reach 32.015 billion dirhams in 2025.
The report indicates that businesses and families are the primary beneficiaries of these tax expenditures, with businesses accounting for 44.8%, equivalent to 14.356 billion dirhams, while families received 46.5% of the total, or 14.873 billion dirhams. This distribution reflects the government’s desire to strike a balance between supporting economic activity and enhancing citizens’ purchasing power.
Tax expenditures are projected to see a slight increase compared to 2024, rising from 31.493 billion dirhams to 32.015 billion dirhams in 2025. In terms of distribution, businesses and families retained their leading positions among beneficiaries, though there was a minor shift in shares, with the business share decreasing from 44.9% to 44.8%, while the family share increased from 45% to 46.5%.
According to the report, farmers and agricultural producers benefited from tax expenditures amounting to 1.882 billion dirhams (5.9%), while real estate developers received 1.094 billion dirhams (3.4%), and employee benefits amounted to 4.520 billion dirhams (14.1%).
Regarding objectives, internal saving promotion received the largest share of tax expenditures, valued at 6.179 billion dirhams (19.3%), followed by support for purchasing power at 5.963 billion dirhams (18.6%), and encouragement for homeownership at 5.265 billion dirhams (16.4%).
Other objectives included encouraging investment (2.447 billion dirhams), enhancing education (2.027 billion dirhams), supporting the agricultural sector (1.993 billion dirhams), and reducing production costs (1.179 billion dirhams).
The list also included support for social protection (726 million dirhams), exports (399 million dirhams), culture and heritage (258 million dirhams), health services (211 million dirhams), foreign savings (165 million dirhams), and renewable energies (155 million dirhams), as well as support for associative work and volunteering (121 million dirhams), and the development of marginalized areas and handicrafts.
This report reflects the state’s continued direction of tax support aimed at balancing economic incentives with social justice, within a framework that seeks to encourage investment and production while safeguarding purchasing power and promoting sustainable development.
