Morocco’s Labor Union Slams New Solidarity Tax, Citing Broken Promises and Unfairness

The government of Saad Eddine El Otmani is being pointed out by the UMT for having violated the commitments made. The executive promised to submit the draft laws to the unions and economic actors for consultation before their transfer to Parliament. This was not the case with the 2021 PLF transmitted "without consulting anyone", Hespress reports.

The UMT believes that the government is targeting the working class and striking its purchasing power. This compromises the financial and accounting balances to the detriment of the social and societal dimensions. In addition, the Moroccan union has made it known that this tax is plunging the large category of employees into precariousness. This point of view of the UMT stems from the fact that this social solidarity contribution only targets the public and private sectors at 73%. This is not the case for those with income in real estate, agriculture and the liberal professions who benefit from the free and flexible declaration system to reduce their tax obligations. As a result, the government is therefore showing its inability to broaden the tax base, supports this union.

In view of this demonstration to contest the government’s decision, the UMT categorically rejects this new tax measure considered as an undeclared wage reduction. Moreover, the UMT believes that this contribution perpetuates the feeling of injustice within the large category of employees. This union partner therefore recommends introducing a wealth tax and focusing on the beneficiaries of the country’s assets. The UMT calls on the government to take into account the recommendations of the last debate on the broadening of the tax base, in order to reconsider the rate of income tax (IR).

Already, the Moroccan Labor Union calls for the opening of real consultations on the expansion and generalization of social protection. It also calls on the government to create new financing mechanisms.