Morocco Delays Disaster Solidarity Tax Amid Government Disagreements

Heated debates, around the value of the tax rate related to the compensation fund, forced Saad Eddine El Othmani to postpone the approval of the new solidarity tax against disasters.

The fund, which will benefit from an 80% contribution from the State, is not about to see the light of day, due to differences of opinion on the tax rate as well as on the persons subject to it. The government has therefore decided to postpone the approval of the new parafiscal tax, pending the updating of the data relating to the deductions.

The solidarity fund, whose tax rate has been set at 1% of the premium paid in insurance contracts, is being set up as part of the new regime, which guarantees the coverage of the consequences of disasters, and the compensation of victims.