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Walaw

Economy

Morocco’s Parliament Approves the 2025 Finance Bill in Second Reading

Saturday 07 December 2024 - 13:06

Zoom

Morocco’s Parliament has approved the 2025 Finance Bill (PLF 2025) during its second reading. The bill secured 178 votes in favor, with 57 against and no abstentions. Several amendments were introduced and favorably received by the government, reflecting its commitment to economic and social reform.

Key amendments include a full exemption from income tax on basic retirement pensions and annuities starting January 1, 2026, with complementary retirement schemes excluded. Additionally, a 50% reduction in income tax for pensions and annuities received in 2025 has been instituted. The bill also subjects earnings from online gambling platforms based abroad to a 30% income tax withholding and introduces a 2% solidarity contribution for Moroccan residents receiving such income.

To ensure fiscal justice, the bill exempts contracts and acts related to guarantees and mortgages from registration duties, aiming to streamline administrative procedures and align them with fiscal regulations. This measure addresses taxation on lifting mortgages and other associated administrative acts.

During the discussions, Minister of Economy and Finance Nadia Fettah emphasized that the bill embodies the government’s dedication to strengthening the foundations of a social state. She highlighted the priority of addressing employment, urging a shift toward accelerated investments to generate opportunities for young people beyond the reliance on businesses alone.

Fouzi Lekjaa, Minister Delegate for the Budget, noted that the bill is based on precise technical and scientific data. The government has allocated over 100 billion dirhams for social programs, including social dialogue, medical coverage, direct social aid, housing subsidies, and resettling residents of informal settlements.

Furthermore, approximately 10% of the country’s GDP has been designated to bolster incomes of vulnerable and middle-class citizens. Of this allocation, 45 billion dirhams are earmarked for social dialogue, resulting in significant salary increases. These include 3,800 dirhams for medical professionals, 3,000 dirhams for higher education faculty, and increases ranging from 1,500 to 4,800 dirhams for employees in the Ministry of National Education.

The retirement income tax exemption is a critical reform targeting those who have dedicated their careers to serving the nation. The financial impact of this measure is estimated at 1.2 billion dirhams, reinforcing the government’s broader commitment to equitable socio-economic policies.

This Finance Bill reflects Morocco’s proactive approach to addressing social needs, fostering economic growth, and enhancing the quality of life for its citizens, particularly those in vulnerable and middle-income groups.