Morocco’s RNI Party Unveils 270 Billion Dirham Economic Plan Without New Taxes

The Rassemblement National des Indépendants (RNI) describes its program as "costed, credible and achievable". Moreover, "we will not make untenable promises," said the former Minister of Economy and member of the party’s Political Bureau, Mohamed Boussaid, specifying that "the additional cost of our program is sustainable and we will mobilize various resources to finance it". In addition, the political party has committed not to increase the value added tax (VAT), nor on the income tax (IR), nor on the corporate tax (IS), reports Snrtnews.

To achieve this goal, "the only solution left is to go and mobilize additional tax revenues," says Mohamed Rahj, recalling the recommendations of the National Tax Conferences held in Skhirat on May 3 and 4, 2019, as well as the recent study by Bank Al-Maghrib on the mobilization of tax revenues in Morocco. According to these studies, it is possible to increase tax revenues through the mobilization of potential. It is "to review the bases of certain contributions, but also to mobilize the informal sector by inviting it this time to join the formal sector and pay its taxes and duties", knowing that the informal sector generates a loss of 40 MMDH and 36 MMDH less tax revenue in terms of customs duties, domestic consumption taxes, VAT, taxes and others to the Moroccan state and 6 MMDH to the CNSS. It will also be necessary to strengthen tax control, reduce tax rates and others.

However, the party has not planned any measures to manage the debt, nor for recourse to borrowing to fulfill its commitments. Moreover, recourse to borrowing will depend mainly "on the donors and international financial organizations that have their say," says the tax expert.

For the record, Morocco’s overall public debt ratio reached 80.4% of GDP in 2019, 94% in 2020 and is likely to reach 100% when it should not exceed 60% of GDP. As for the outstanding public external debt, it reached 373.7 MMDH at the end of the first quarter of 2021, according to the Directorate of the Treasury and External Finance (DTFE).