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Morocco’s Tax Exemptions Total $3 bln in 2019

Morocco’s Tax Exemptions Total $3 bln in 2019

Saturday, 26 October, 2019 - 09:15

Morocco's tax exemptions totaled 27.78 billion dirhams ($3 billion) this year, down 3 percent from a year ago, according to a report by the Ministry of Economy and Finance.

The report noted that this amount constituted 58 percent in total tax exemptions, 29 percent in tax rate reductions, and 8 percent in partial and temporary exemptions and another 5 percent granted in the form of projections, facilities and liabilities.

The share of the real estate sector in the total tax exemptions granted by the government during the current year was about 15.9 percent, compared with 18.9 percent last year.

The social hedging sector’s share came in second with 17.6 percent of the total value of tax exemptions, while the export sector’s share was 10 percent, followed by the agriculture and fishing sector at 9.1 percent, the financial sector at 7 percent and the transport sector at 5 percent. The food industry sector’s share amounted to 4 percent.

According to the types of tax, VAT exemptions topped the ranking by about 51 percent of the total value of tax exemptions in 2019, but fell by about 3 percent compared to 2018, and income tax exemptions (mainly consisting of wages) decreased by 20 percent compared with last year.

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