Draft Budget Bill/Social contribution: The employers want the tax not to be renewed
Stimulating private investment, strengthening the cash flow of companies, improving their competitiveness, and encouraging the “Made in Morocco” products and services, not to mention the streamlining of the processes and of the relationship with the Administration: these are the four pillars around which revolve the proposals of the General Confederation of Moroccan Enterprises (CGEM) for the 2023 Appropriations Bill. A total of 15 priority measures were unveiled on Tuesday, October 18, at a press conference held by the CGEM in Casablanca.
■ Social solidarity contribution: Established for the first time in 2013, the social solidarity contribution has been implemented three times in recent years, thus neutralizing all efforts to reduce the corporate tax. Employers want visibility concerning this surcharge. They want “to have the confirmation of its non-renewal” , especially that such a tax has become “permanent” , thus becoming a kind of additional corporate tax. The CGEM also raises again the issue of the VAT reform. The employer’s association is in favor of the initiation of the redevelopment of five taxation rates, the redefinition of the scope of application and of the waivers, as well as the generalization of the right to deduction and reimbursement. Another proposal is to continue the reduction of the minimum contribution with a view to its abolition in 2025. For next year, the transition to a rate of 0.3% is desired. Special treatment is also expected for the affected sectors, in this case tourism and transport.
■ Corporate tax, registration fees… Lowering the corporate tax is a recurring request from the CGEM. For the 2023 Appropriations Bill, employers are in favor of its continuation for industrial companies while initiating that of other sectors.
■ Local taxation: Its reform should be initiated with priority being given to the overhaul of the business tax and of the tax on municipal services. The CGEM speaks of “inequity between owners and tenants burdening any sale & lease-back operation”. Employers also want to initiate the reform of wage taxation, with the revision of the brackets of the income tax scale and the deduction of tuition fees from the tax base. Employers are also in favor of the renewal of the 36-month income tax exemption for all young recruits under a permanent contract. Regarding this question, the government has made a decision. Employers demand the rationalization of the taxation of import inputs in order to promote “Made in Morocco” products and services and allow operators to obtain supplies at costs comparable to those of international competitors.
■ Third party holder notice, sanctions, oral debate… and other issues For Appropriations Bill 2023, the CGEM raises again the issue of the overhaul of the policy for the collection of public debts (Third party holder notice), with, among other things, the digitization of the initial contacts. Added to this is the reform of the penalty system by modulating it according to the seriousness of the offence.
Khadija MASMOUDI
