Fouzi Lekjaa: Salaries Up To 5,000 Dirhams Tax-Exempt
Finance Minister Fouzi Lekjaa presents the 2027 budget to Parliament, raising the income-tax exemption threshold to 60,000 dirhams a year and gradually cutting the top rate through 2031.
Morocco's Minister of Economy and Finance, Fouzi Lekjaa, presented the main outlines of the 2027 Finance Bill to both chambers of Parliament in a joint session on Friday, the new government's first budget. The bill includes a tax reform that raises the income-tax exemption threshold to 60,000 dirhams a year, the equivalent of 5,000 dirhams a month, alongside several other social and fiscal measures affecting millions of Moroccan households.
Key tax and social measures
The Government Council had already approved the bill before it went to Parliament. Its main provisions include:
| Area | Measure | Cost or beneficiaries |
|---|---|---|
| Income tax | Exemption threshold raised to 60,000 DH a year (5,000 DH a month) | 5.5 billion DH |
| Tax burden on employees | Employees whose net monthly pay is below 10,000 DH would be exempt, per Lekjaa's statement to Parliament | — |
| Top marginal rate | Gradual cut from 37% to 30% by 2031 | — |
| Professional expenses deduction | Raised to 45%, capped at 35,000 DH a year, applying to 2027 income | — |
| E-cigarette tax | Doubled, from 50 to 100 DH per unit | — |
A tax reform phased in through 2031
The reform will not take effect all at once but over five years: after the first 60,000 DH of annual taxable income is exempted starting in 2027, the top marginal rate will gradually fall from 37% to 30% by 2031, with fewer tax brackets. Le Matin notes that the exemption applies to taxable income after standard deductions, not directly to gross salary.
Expected growth and a controlled deficit
According to Lekjaa's presentation as reported by Le Matin, the bill is based on economic growth of 4.3% in 2027, compared with 3.1% expected in 2026, with a deficit target of 3% of GDP and continued reduction of public debt. The bill allocates about 400 billion DH to public investment, plus 45.4 billion DH for Health and 121.3 billion DH for Education and Training, with thousands of new budgeted posts created in both sectors.
What this means for Moroccans' wallets
In practice, a large share of low- and middle-income employees will pay less tax on their monthly salary starting in January 2027, as the exempt professional-expenses deduction ceiling also rises. This measure comes alongside other social provisions in the same bill, including a higher minimum pension. The bill will now undergo detailed review in parliamentary committees before a final vote.