Morocco Considers Wealth Tax in 2023 Budget to Address Economic Crisis

The introduction of the wealth tax would be one of the government’s options to deal with the current economic and social crisis, says the daily Al Ahdath Al Maghribia, recalling that the debate on the introduction of this tax is not new, however. This option has been mentioned for at least eight years, in a proposal from the Democratic Left Federation (FGD) to the House of Councillors based on Articles 39 and 40 of the Constitution.

The Democratic Labor Federation (FDT), in an amendment to the 2012 Finance Bill, had proposed the introduction of this tax. The proposal had been supported at the time by the opposition, but was ultimately not retained by the Benkirane government under Article 77 of the Constitution, considering that this tax was likely to reduce investment and promote tax evasion.

The debate on the introduction of the wealth tax is raised by the opposition at almost every discussion of the finance bill. This year, it is the government itself that seems to have taken the initiative in order to replenish the state’s coffers, which have been severely affected by the Covid-19 health crisis. The filing of the 2023 PLF in parliament by October 20 will determine whether this tax will become a reality in Morocco.