Morocco Considers Progressive Income Tax Reform to Address Economic Challenges

The CESE recommends a reduction in the tax rate for the intermediate income brackets, according to a study on the health, economic and social impacts of Covid-19 and possible levers of action. This measure could allow these employees to move to a lower tax rate during crisis periods.

The other proposal made by the CESE is the application of a basic minimum income, particularly for poor and vulnerable families. It aims to impact the reduction of individual vulnerability.

For the CESE, the list of beneficiaries will have to be expanded to involve the most vulnerable groups, such as people with physical disabilities or unable to work, and to limit this basic minimum income to a level below the minimum wage. The objective is to avoid inappropriate behavior, assures the same source.

To assess the effectiveness of the mechanism, the Council also proposed to experiment with it in one of the regions of the country. Thanks to the project of generalization of social coverage, decided by King Mohammed VI, the transition to the establishment of a minimum income could be effective, assures the CESE. As for the targeting of beneficiaries, it will be ensured by the implementation of the Unique Social Register (RSU) and the National Population Register (RNP).