Morocco Considers New Wealth Tax to Promote Economic Fairness

The Economic, Social and Environmental Council or CESE is an independent advisory Moroccan institution created in 2011 (by royal decree) with the aim of carrying out studies and proposals to the Moroccan government and the two chambers of Parliament. And the CESE has proposed! Indeed, recently, the council has presented some types of taxes to complement the tax system, in the direction of a "fairer and more equitable taxation of heritage".

Thus, we can read in one of its recent reports entitled "A Tax System, Pillar for the New Development Model": "The dimension of wealth tax should be extended to certain luxury goods, known as external ostentations of wealth (yachts, private jets, luxury cars or racehorses, ...)".

Of course, these are not the only proposals of the CESE. We can also cite: "The implementation of an inheritance tax, which ensures payment per generation. Still for inheritance, there is a need from the 2020 finance law to restore the fiscal alignment of inheritance and donation and particularly so that the tax base for the capital gain in case of sale of an inherited property, is that of the initial acquisition and not that of the time of death".

Will the two chambers therefore take into account the recommendations of the Council created by Royal Decree for this purpose?