The minister -delegate, which is responsible for relationships with Mustapha Baitas parliament, announced that the total cost of the income tax reform (IR) is 8.6 billion dirhams. This reform, which aims to reduce taxation, includes a complete revision of the IR scale, in particular the increase in the exemption from the annual income from 30,000 to 40,000 dirham, which enables monthly wages of less than 6,000 dirhams.
The minister also said that the tax tranches were reorganized, which enables a reduction in applicable prices that can achieve up to 50 %. The border tax rate was reduced from 38 % to 37 %, and the annual deduction was increased from 360 to 500 dirham, which gives the reduction ceiling to 3,000 dirham.
This reform mainly benefits employees with modest income: 80 % of taxpayers will now be completely freed from IR. Salaries less than 15,000 dirhams will make up 69.9 % of the total financial efforts of this reform. For example, an employee who receives 10,000 monthly dirham increases his income by around 435 dirham.
At the same time, a total exemption for pensions and annuities of the basic pension plans in favor of 164,744 retirement was set at a price of approx. 1 MMDH. This reform is a continuation of the 2023 Financial Act and aims to increase the tax burden and at the same time expand the tax assessment basis in accordance with the goals of the government’s tax reform.
M.Ba.
