Morocco Reverses Tax Exemption for Retirees in Budget Bill Amendment

After being approved at the last minute by the House of Councillors on December 6, the measure of total exemption from income tax (IR) for retirees was canceled on Wednesday, December 11, reports TelQuel.

Finance Minister Mohamed Benchaâboun took this action based on Article 77 of the Constitution, which states that "Parliament and the government shall ensure the preservation of the balance of state finances," and that "the government may, in a reasoned manner, oppose the inadmissibility of any proposal or amendment made by members of Parliament when its adoption would result, in relation to the finance law, either in a reduction of public resources or the creation or aggravation of a public burden."

In contrast, the finance committee has retained the 60% tax deduction for retirement pensions not exceeding 168,000 gross annual dirhams. This was 55% since 2015, it is specified.