Moroccan Fruit and Vegetable Industry Pushes for VAT Exemption to Boost Competitiveness

Producers and exporters of fruits and vegetables, penalized by VAT, should be relieved in the coming days. They plead to be more competitive in the sector against competition.

The turnover of producers and exporters is strongly impacted by VAT. According to l’Économiste, this tax cuts their turnover by 7 to 8%. In addition to the loss recorded, the competitiveness of the sector compared to competing countries, especially Spain, Turkey and Egypt. Unlike Morocco, producers and exporters in these countries benefit from an exemption or a tax recovery system.

These players in the sector are asking the government to introduce an amendment to the 2021 Finance Bill. This could allow them to recover the VAT and at the same time benefit from the status of indirect exporter.

The same source also denounces blockages at the port of TangerMed of agricultural products (perishable) intended for export that have caused heavy losses for companies. In total, "the tax regime deployed in no way takes into account the specificities of the agricultural sector, let alone its ecosystem where thousands of informal service providers reign," the same daily points out.