Morocco to Revise Income Tax Scale in Next Budget, Minister Says

The revision of the income tax is becoming more concrete. During an oral question session at the House of Councillors, Fouzi Lekjaa stressed that the government "has committed to the various social partners to proceed with a revision of the IR scale in the next PLF, in order to ease the pressure on employees subject to withholding tax." He recalled that after the tax reform of the 1980s in Morocco, a debate on tax management was opened and led to national conferences. Thus, a set of conclusions was drawn up in 2019, which were translated into the framework law in 2021 and whose implementation began in 2022.

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The tax reform aims in particular to broaden the tax base and reduce the tax burden, the minister specified, stressing the need to "fight against tax fraud and evasion in all its forms." This fight has borne fruit since 2022 and 2023 in terms of value added tax (VAT).

The current year will see the continuation of the implementation of the reform related to VAT and withholding tax from July, in accordance with the 2024 Finance Law, Lekjaa also said, noting that the measures related to corporate tax (IS), IR and VAT have resulted in an increase in the rate of expansion of the tax base without resorting to greater tax pressure.