Rabat – Following an extended session in Morocco’s House of Representatives, the Finance and Economic Development Committee approved today the first segment of the 2025 Finance Bill with 26 votes in favor and 11 against.
The session, attended by Minister Delegate for the Budget Fouzi Lekjaa, involved the review of over 540 submitted amendments.
“This process was marked by a healthy and responsible debate between the government and MPs from both the majority and opposition,” Zaina Chahim, Chair of the Finance and Economic Development Committee, said in a press briefing following the session.
She noted that the government had responded favorably to many of the proposed amendments, which primarily focus on the Atlantic African gas pipeline, Morocco’s preparations to host events like AFCON 2025 and the 2030 World Cup, and updates to the customs and tax codes.
During the general discussions on the 2025 bill, Minister of Economy and Finance Nadia Fettah, who was also present, pointed out that the bill reflects the government’s strong commitment to implementing these amendments for the 2021-2026 period while adapting to ongoing crises and annual challenges.
She noted that the continuity of the program, despite an uncertain international environment and domestic obstacles, demonstrates the government’s stability and resilience in the face of adversity.
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Fettah expressed confidence in achieving the projected growth rate for 2025, based on accurate national data and international forecasts.
The minister also outlined key social measures, such as increasing the VAT share allocated to local authorities from 30% to 32% and raising workers’ incomes through reduced income taxes.
She also announced a historic public investment allocation of MAD 340 billion ($34 billion) for 2025, aimed at supporting major projects, including MAD 17.6 billion ($1.7 billion) for infrastructure and water, MAD 11.6 billion ($1.1 billion) for agriculture, and MAD 6.6 billion ($650 million) for housing, all designed to directly benefit Moroccan businesses.
The new bill also introduces tax relief measures for middle and lower-income groups to boost purchasing power and formal employment.
Building on the 2019 National Taxation Conference and the April 2024 social dialogue agreement, it offers tax cuts of up to 50% for certain income brackets. Civil servants will receive up to MAD 480 ($48), while over 80% of private sector employees and nearly 96% of retirees will benefit from income tax exemptions.
