Morocco Considers Income Tax Reform to Address Rising Living Costs

According to Khalad Zazou, Director General of Taxes, a revision of income tax on salaries is possible, in accordance with Article 4 of Framework Law No. 69-19 on tax reform. This provision allows for the restructuring of the progressive income tax scale applicable to individuals and the expansion of the tax base, reports L’Économiste.

When questioned about the ongoing steps in this direction, the official stated: "We are preparing a set of options as well as simulations that we will soon submit to the relevant authorities. Income tax should certainly have its share in the 2023 finance bill because the deadline set by the framework law on tax reform is four years away. We will therefore see the final configuration that will be retained."

Unchanged since 2010, this income tax scale has been the subject of demands during the social dialogue, the newspaper recalls, specifying that according to the current provisions, people whose annual income does not exceed 30,000 DH are exempt. The trade unionists propose to raise this ceiling to 36,000 DH, or even 40,000 DH.

To achieve this, the government must determine the income level on which the cursor should be positioned to reduce the tax. The aim is to avoid frustrating certain brackets in favor of others, the newspaper points out.