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Morocco to Raise Car Prices as New VAT Tax Looms in 2020
Thursday 14 November 2019, by
Major changes will take place with the arrival of the new Finance Law 2020. Among the reforms implemented by the Moroccan government, the increase of one of the VAT brackets from 7% to 10%.
This increase in the VAT rate will be reflected in the prices of the cheapest cars on the market, in particular the commercial brand "Dacia".
According to the Aabir website, the government is under intense pressure from parliamentarians to abandon this law, which they say is likely to have a negative impact on the cost of products and materials used in car manufacturing.
Parliamentarians have a few more weeks to try to convince the government to abandon this reform. If the law is passed, it is unclear whether manufacturers will pass on the increase to the final consumer or cut their margins.