Nadia Fettah Alaoui Reassures Citizens: Tax Reform Won't Dent Wallets
Minister of Economy Nadia Fettah Alaoui assured Moroccan citizens on Tuesday that the government's tax overhaul for 2024 will not diminish their purchasing power.
Addressing concerns raised by the Supreme Audit Board before parliament, Nadia Fettah Alaoui confidently stated that the proposed VAT exemptions outlined in the 2024 Finance Law will not compromise the neutrality of this tax. She anticipates these changes to have a positive impact on household purchasing power for several reasons.
Starting in January, the VAT reform will eliminate taxes on numerous essential goods, including foods, medicines, and hygiene products currently taxed at rates of 14% and 7%, the minister explained. Additionally, rates will gradually decrease from 10-14% on other everyday items, leading to an improvement in purchasing power, Nadia Fettah Alaoui emphasized.
The minister supported her argument by citing data indicating a 6.6% year-over-year decrease in tax expenditures, which dropped from MAD 37 billion in 2022 to MAD 35 billion this year.
With the tax burden lightened on essentials, Nadia Fettah Alaoui emphasized that Moroccan households can expect their hard-earned dirhams to go further in 2024.
"Citizens need not worry about the tax reform eroding their buying power," she stated. "If anything, it will provide welcome relief at the checkout counter."