Rabat – The Finance and Economic Development Committee in Morocco’s House of Representatives has passed a first draft of the 2020 Finance Bill.
Twenty-four MPs voted in favor of the bill, and 13 opposed it. MPs had been reviewing the bill for two weeks and proposed 270 amendments.
King Mohammed VI reviewed the 2020 Finance Bill on October 9 with Minister of Economy Mohammed Benchaaboun. According to the royal spokesman, the draft bill is in line with instructions the King has given in his royal speeches.
Legislators want the bill to prioritize education reforms and socio-economic projects to curb social disparities while boosting the country’s economy.
The bill allocates MAD 91 billion ($9.4 billion) to the health and education sectors. The figure amounts to around MAD 2,500 per person in Morocco for the year.
Lawmakers have also budgeted MAD 14.6 billion for the subsidy fund. The fund subsidizes flour, sugar, and butane gas, according to media outlet Le 360. A further MAD 26 billion would go to support the purchasing power of Moroccans.
At the same time, legislators are keen to encourage investment in Morocco. The 2020 Finance Bill proposes a decrease in the corporate tax rate from 31% to 28%.
Typical corporate tax rates globally range from 10 to 35%, although some countries have a 0% corporate tax rate. Morocco’s current rate is in line with France’s rate of 31%, but other countries in the region have lower corporate tax rates. Algeria’s rate is 26% and both Tunisia and Spain have a rate of 25%.
In a presentation to the Finance and Economic Development Committee on Thursday, November 7, Benchaaboun said the new bill will continue to reform the subsidy fund and implement decentralization.
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