Moroccan Business Group Proposes Tax Reforms in 2022 Finance Bill

These guidelines generally focus on preserving the competitiveness of companies, their balance in cash flow, and strengthening the mechanisms of trust between the administration and the taxpayer, according to the General Confederation of Moroccan Enterprises (CGEM) in a press release.

In its proposals, the CGEM urged elected officials to mobilize revenue to finance public policies and investments, but also to act on taxation in favor of solidarity, innovation, competitiveness and sustainability, to meet the challenges related to the post-Covid economic recovery and the ambitions of the New Development Model.

To this end, the employers’ association recommended initiating a reduction in the corporate tax rate to reach the internationally accepted level; reducing the minimum contribution "with a view to its abolition within 5 years"; reform of local taxes; the generalization of a 10% VAT on solar equipment as well as the implementation of a targeted R&D tax credit.

The purpose of the proposals is to ensure the financial balance of companies while maintaining their financing capacities, by accelerating the VAT reform.

Regarding the productive fabric, the employers’ association suggested continuing to support investment through the strengthening of public procurement by maintaining the allocated budgets and encouraging "made in Morocco ".