Home Economy ‘Unfair’ Tax System: Associations Pay 30% of Taxes, Private Schools 17%

‘Unfair’ Tax System: Associations Pay 30% of Taxes, Private Schools 17%

Mustapha El Khalfi

Rabat – “Associations pay a 30 percent tax rate, while private schools pay only 17 percent,” said Mustafa El Khalfi, the minister in charge of relations with parliament and civil society, on Friday.

“The tax system deals with associations ‘unfairly,’” said El Khalfi, pointing out the enterprises’ benefits from higher tax reduction than that offered to NGOs.

“The civil society will not be able to play an effective role in the field of health and education, as long as the associations do not benefit from support,” he said, as reported by Telquel Arabi .

For the minister, the current tax and financial system is “unfair to associations” because it “considers entrepreneurship better than associations.”

He indicated that the possibilities offered to associations are limited. “Moroccans can invest in private education and benefit from a tax reduction of up to half,” he said.

He also gave the example of press contractors. “They can benefit from a reduction of up to 45 percent, while workers in literacy programs do not benefit from any tax-free reduction, zero percent,” he said.

The government spokesman stressed that the reform of the civil society system, is “conditional on the reform of the tax system.”

Speaking on the 2018 Fiance Bill, Minister of Finance Mohamed Boussaid said that Morocco will take further tax measures for the promotion of private investments.

In this sense, Boussaid presented a number of tax measures for companies, whichinclude taking the first step in the progressive taxation of companies (SI), which will help fuel the monetary capacity of SMEs.

In addition to implementing taxation measures relating to seawater desalination buildings and the raising of marine living beings , other measures intervene at the level of the value-added tax (VAT). This includes the recognition of the tax neutrality of participatory products, the promotion of youth employment up to a maximum of MAD 10,000 for every ten employees (up from the current limit of five employees), andexemption from the income tax (IR).

Boussaid also discussed regionalization measures, as the government will increase the SI and regions RI from 3 to 4 percent, in addition to the general budget appropriations, bringing total support to MAD 7 billion.

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