Local tax revenues for Moroccan territorial collectivities reached 32,4 milliards de dirhams by the end of July 2026, marking a 17,2% increase compared to the same period in 2025, according to the Trésorerie Générale du Royaume (TGR). This growth was driven by a 22,9% rise in direct taxes and an 11,9% increase in indirect taxes, as detailed in the TGR’s monthly bulletin on local finance statistics.
Direct and Indirect Taxes Drive Revenue Growth
Tax revenues accounted for 89,4% of total revenues collected by territorial collectivities through the first seven months of 2026, according to the Trésorerie Générale du Royaume. The sharp increase stems primarily from a 22,9% jump in direct taxation and an 11,9% expansion in indirect taxation.
Transfers from State Resources and VAT Growth
Transferred resources rose by 8,7% to reach 20,63 milliards de dirhams by the end of July 2026, up from 18,98 milliards de dirhams a year earlier, based on data from the Trésorerie Générale du Royaume. This financial transfer increase stems mainly from a 14,2% rise in the share of territorial collectivities in Value Added Tax (VAT) proceeds, generating an additional 1,72 milliard de dirhams. Meanwhile, the share of regions in corporate tax (IS) and income tax (IR) surged by 41,2%, adding 1.45 milliard de dirhams to local coffers. VAT proceeds remain a critical anchor for municipal budgets, making up 38,4% of total local revenues.
State-Managed Versus Locally Managed Revenues
Resources managed by the central state on behalf of local authorities totaled 8,49 milliards de dirhams at the end of July 2026, representing an 8,4% increase, according to the Trésorerie Générale du Royaume. This category includes a 10,6% rise in the communal services tax—adding 448 million dirhams—and a 7,1% increase in the professional tax, contributing an extra 228 million dirhams. Concurrently, resources managed directly by territorial collectivities climbed 16,3% to reach 7,08 milliards de dirhams, compared to 6,09 milliards de dirhams a year prior.
Directly managed local revenues draw heavily from specific municipal levies. The tax on unbuilt urban land generated 2,81 milliards de dirhams, serving as the largest contributor in this category. It is followed by the fee for temporary occupation of the communal public domain at 729 million dirhams, construction operation taxes at 636 million dirhams, and domain revenues yielding 490 million dirhams, as recorded in the official statistics.
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