Morocco’s net VAT collection rate decreased to 38.5% by the end of June, a drop from approximately 45% the previous year. Despite this decline, gross VAT collection continues to improve, indicating the issue isn’t a shortfall in initial revenue. The primary driver behind the lower net rate is a significant increase in VAT refunds. These refunds have already surpassed projections outlined in the country’s finance law. This suggests efficient processing of legitimate refund requests, but impacts the overall net collection figure. Experts are analyzing the trend to determine long-term implications for state revenue. The information originates from a report by Médias24, Morocco’s leading economic news source.