Supporting purchasing power and strengthening social protection are among the government’s priorities under the 2027 Finance Bill. To ease the economic pressure on households, the government is introducing a package of measures targeting taxation on wages, direct assistance, certain energy costs and the regulation of food markets.
Income tax reform
Income tax reform is one of the main measures announced in the bill. It builds on reforms launched in 2025 and has three objectives: reducing the tax burden on employees and the middle class, simplifying the tax scale and encouraging declared employment.
Starting in January 2027, the annual income threshold exempt from income tax will rise from 40,000 to 60,000 dirhams. Combined with an increase in the professional expenses allowance from 25% to 45%, the measure is expected to exempt employees earning less than 10,000 dirhams net per month from income tax.
According to government projections, 87% of employees are expected to benefit from the exemption. For a large share of them, the gain is estimated at around 500 dirhams per month. The reform will cost the state 5.5 billion dirhams in 2027.
The presentation note also proposes reducing the number of taxable brackets from five to three, with progressive rates of 10%, 20% and 30%, while lowering the marginal rate on the highest bracket from 37% to 30%.
The reform will be rolled out gradually over five years, from 2027 to 2031, following an assessment of its cost and impact on household incomes and public revenues. It will also be accompanied by a broader tax base and stronger efforts to combat tax evasion.
Read also : Morocco’s income tax reform: New brackets for 2027–2030 as top rate falls to 30%
Higher social assistance and retirement pensions
The Finance Bill also provides for stronger direct social assistance. The minimum monthly amount is set to rise from 500 to 600 dirhams in an initial phase before gradually reaching 1,000 dirhams. The first increase will require an additional allocation of 3 billion dirhams.
The system will also take households’ actual circumstances into account, with eligibility based more heavily on disposable household income to better tailor assistance to beneficiaries’ needs. As a result, a household member entering the workforce should no longer automatically lead to the withdrawal of social assistance.
Retirees are also among the beneficiaries of the announced measures. The minimum pension is set to reach 1,700 dirhams per month in 2027 before gradually increasing to 3,000 dirhams by the end of the government’s term. The measure is expected to benefit 500,000 people, including more than 150,000 widows.
The government also plans to increase the share of the pension paid to widows from 50% to 100%, a measure expected to benefit 431,000 people. Both measures will be implemented gradually, taking into account the specific features and financial balances of the pension schemes concerned.
Electricity bills of up to 100 dirhams to be covered
The 2027 Finance Bill also provides for direct intervention to reduce electricity costs. Starting in January 2027, the state is expected to cover monthly electricity bills of no more than 100 dirhams, easing the burden on the budgets of the households concerned.
The measure is expected to benefit around 6 million customers, or nearly 60% of the customer base, at an estimated annual cost of 2.8 billion dirhams. Some small-scale craft businesses with low electricity consumption, particularly in rural areas, will also benefit.
The measure comes on top of support already provided to maintain the financial balance of the electricity sector. Between 2022 and 2025, state transfers to the National Office of Electricity and Drinking Water (ONEE) reached 17 billion dirhams. A 6.5-billion-dirham agreement signed in 2026 was also mobilized to help restore the Office’s financial position and accelerate its investment program, including efforts to preserve tariffs.
Read also : Draft Finance Bill: Morocco’s total dam storage capacity to exceed 24 billion cubic meters by end-2027
Subsidies for basic goods maintained
Support for essential goods is another part of the government’s measures to protect purchasing power. For 2027, 19.4 billion dirhams has been earmarked to subsidize butane gas, sugar and national soft wheat flour, with the aim of ensuring the availability of these products and price stability on the domestic market. The program will be accompanied by monitoring of international market developments and their impact on subsidy financing needs.
In 2026, an additional 8 billion dirhams had brought the subsidy budget to 22 billion dirhams. The allocation helped strengthen financing for the system in response to rising costs, particularly the increase in butane subsidies, and financed the exceptional support scheme reintroduced for road transport operators. The amount mobilized for this purpose reached 2.488 billion dirhams between January and September 2026 to mitigate higher operating costs and their impact on transport fares.
Butane gas accounts for a significant share of this expenditure. Between January and August 2026, the average subsidy per 12-kilogram cylinder reached 61.79 dirhams, up 15.75% year on year.
For sugar, falling international prices are expected to reduce the net cost borne by the state. For soft wheat, they have kept import costs below the target price of 270 dirhams per quintal without triggering the recovery mechanism. Improved weather conditions during the 2025/2026 agricultural season also supported a recovery in sugar and cereal production, helping ensure more regular supplies.
This monitoring is taking place against a backdrop of energy market tensions. Geopolitical tensions and disruptions to shipping through the Strait of Hormuz have increased price volatility, worsened logistical constraints and raised transport and insurance costs.
Maintaining this support is intended to limit the impact of market fluctuations on prices paid by consumers. It forms part of a broader policy aimed at stabilizing supplies of basic goods.
Reorganizing food markets to tackle prices
Beyond incomes and direct assistance, the 2027 Finance Bill’s presentation note places significant emphasis on how food markets operate. Bringing prices down to reasonable levels requires better control of production, storage and transport costs, as well as margins proportionate to the services provided, while balancing household purchasing power with a fair margin for producers.
The government plans to reform distribution channels to reduce costs linked to intermediaries, improve supply conditions and bring producers closer to buyers. The reform is also intended to reduce losses, strengthen competition and increase transaction transparency, in line with the strategy to enhance the value of agricultural production under the Generation Green strategy.
The system will include seasonal supply plans for several strategic products, including cereals, potatoes, onions, tomatoes, red meat, sardines and olive oil.
These plans will take into account domestic market needs, production forecasts, available stocks and volumes destined for export, including those already covered by contracts. Identifying potential shortages will make it possible to anticipate the release of stocks, support production or authorize temporary imports.
Agricultural support will also be redirected toward improving productivity, rational water use and the resilience of national supplies through contracts setting out beneficiaries’ objectives and commitments. Particular attention will be paid to family and medium-sized farms and producer organizations. Import exemptions and import assistance will also be assessed based on imported volumes, costs, distribution margins and their impact on retail prices.
In the event of a supply shortage risk, the government also plans to mobilize available stocks and adjust imports to market needs. When forecasts indicate a supply deficit, an import schedule may be established and customs duties adjusted or reduced.
Conversely, temporary and proportionate export restrictions may be considered when domestic supply is threatened. These measures will be based in particular on thresholds linked to stock levels, prices and the length of time supplies can cover needs, while respecting Morocco’s trade commitments and existing contracts.
The aim is to intervene earlier when supply and demand become unbalanced rather than waiting for supply pressures to push up retail prices. 2027 will therefore be a year of concrete implementation, with the introduction of management, monitoring and regulatory tools.
Read also : Morocco’s 2027 budget: How defense spending breaks down
Modernizing wholesale markets and developing shorter supply chains
The reform also provides for changes to the framework governing wholesale markets, with new legislation setting the conditions for establishing and managing both public and private markets. The aim is to clarify the roles of public authorities and local governments as well as the rights and obligations of wholesalers and intermediaries. The government also plans to review the system governing agents and gradually separate local taxation from the requirement to route goods through certain wholesale markets.
A regional marketing complex is planned for Rabat, Salé, Skhirat and Témara, with a budget of 1 billion dirhams. The project is intended to bring together activities currently spread across several markets and improve marketing conditions.
The next phase includes completing construction and equipment, defining management arrangements and relocating traders from the three wholesale markets concerned. Other complexes are also planned in Casablanca, Berkane, Meknes, Marrakech, Agadir and Beni Mellal, with agreements currently being prepared. Ultimately, the network is expected to comprise 12 regional platforms.
The government also plans to establish six regional aggregation and marketing companies in the agricultural areas of Souss, Tadla, Gharb, Loukkos, Doukkala-Abda and Oriental, based on a single set of specifications and an annual audit, with full transparency on prices and fees. Their role will be to facilitate the collection, sorting, packaging, storage, refrigeration and transport of products to markets. They will not operate as a public intermediary monopolizing purchases and resale.
These structures are intended to give farmers and cooperatives access to several outlets, including through auctions and contracts concluded directly with buyers. The system will provide equal access to different operators to promote effective competition and develop shorter supply chains, ranging from direct sales and short channels to wholesale markets.
The presentation note also provides for the development of direct supply contracts between producers, cooperatives, retailers, supermarkets and collective catering establishments. These contracts must specify quantities, quality criteria, delivery and payment conditions as well as procedures for revising prices. The approach will be supported by banking and insurance products backed by contracts and stocks, alongside measures to prevent abusive commercial practices and conditions.
Improving product storage and traceability
The reform of food distribution channels also covers storage and transport conditions. At major artisanal fishing ports, including Larache, Al Hoceima, Safi, Tan-Tan, Laayoune and Dakhla, the government plans to build cold-storage facilities offering competitive rates.
The aim is to better preserve fishery products after landing and strengthen fishermen’s negotiating position. Measures are also planned to improve the cold chain and transport products to inland markets.
For red meat, the announced measures include digital livestock identification, upgrading livestock markets and slaughterhouses and improving carcass traceability. Weighing and invoicing should also help increase transaction transparency.
Fish distribution channels will also be subject to stronger traceability of first-sale transactions through their digitization, as well as closer monitoring of transport and storage conditions, with increased use of refrigerated transport to inland markets. These projects, like direct contracting, will continue in 2028 and 2029.
Modernization will not be limited to major platforms. The government also plans to upgrade local markets, weekly souks and street vending, with adapted and simplified health and administrative rules and better links to supply platforms.
Stronger monitoring of prices and margins
Finally, the presentation note provides for the creation of a national information system for food markets. The system will centralize data on prices at different stages of commercialization — production, wholesale and retail — as well as stock levels and supply flows. Monitoring will focus primarily on several everyday consumer products, including cereals, potatoes, onions, tomatoes, red meat, sardines and olive oil.
The system is intended to identify supply pressures, unusual changes in margins and risks of supply disruptions more quickly. It will include alert mechanisms in the event of abnormal increases in commercial margins or product shortages. The information collected may also be used to guide decisions on imports, stock releases and market inspections.
The system will provide for stronger risk-based permanent controls, wider use of digital invoicing and improved tax and health traceability. Tackling speculative stockpiling, anti-competitive practices and fraud involving product weight or quality will also be among the measures considered. Where necessary, the data collected may be transmitted to the Competition Council within the scope of its powers.
