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Moroccan Parliament Greenlights Contentious Tax Overhaul Despite Public Backlash

Moroccan Parliament Greenlights Contentious Tax Overhaul Despite Public Backlash
Thursday 07 December 2023 - 10:24 Journalists: Dakir Madiha
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Morocco's upper parliamentary chamber decisively approved the initial phase of the 2024 Finance Bill on Wednesday, advancing a series of far-reaching and controversial tax reforms amidst staunch opposition.

By a slender margin of 51-49, the bill's first section, which outlines comprehensive changes to value-added, corporate, and income taxes over the next three years, secured passage. Finance Minister Fouzi Lekjaa observed as eleven legislators opted to abstain from the high-stakes vote.

The focal point of dissent revolved around proposed alterations to value-added tax laws, aimed at broadening the tax base and boosting state revenue. Critics, including citizens and activist groups, argue that these reforms will disproportionately affect Morocco's lower and middle-income populations.

Contentious debates also emerged around amendments concerning corporate taxes, income taxes, customs regulations, and the allocation of funds to the social safety net. Despite the divisive nature of these discussions, the bill's proponents ultimately emerged victorious. The passage underscores the resolute commitment of the majority party to reshape Morocco's tax framework, irrespective of vehement disputes, while also highlighting the minority's inability to obstruct legislation with widespread economic implications.

Although the bill still necessitates full parliamentary approval, this week's vote foreshadows imminent economic policy shifts in Morocco, eliciting a spectrum of responses from both supporters and critics alike.


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