Morocco to Implement Income Tax Reform in 2023, Easing Cost of Living Pressure

Good news for civil servants and employees who can no longer cope with the high cost of living. It is also a victory for the trade union centers which, during the negotiation sessions with the government, stressed the need to reform the IR. Today, the other battle that the unionists hope to win is to be able to negotiate a new scale that could allow Moroccans to feel the weight of inflation less.

During the weekly press briefing, the government spokesman indicated that only those who regularly pay their taxes will be able to benefit from the reforms that come into effect in 2023. For his part, the Delegate Minister in charge of the Budget, Fouzi Lekjaâ, declared during his presentation to parliament, that the government "intends to revise the deductible professional expense allowance rate, currently at 20% and capped at 30,000 dirhams per year. The government has also decided to review the thresholds of the different income tax brackets.

For Baïtas, with the imminent implementation of this reform, "the government has honored all the commitments made under the Social Agreement of April 30, 2022". However, there are still some demands on the negotiating table, such as wage increases and the right to strike. He promises a bill that can preserve the interests of workers and employers. Likewise, the government claims to be doing everything to find common ground with the unions for less social disruption in the years to come.