Finance Law 2022: the Recommendations of the Moroccan Confederation of Business Associations (CGEM)

The Moroccan Confederation of Business Associations (CGEM) has just presented their recommendations as part of the draft finance law for 2022, now being examined in parliament.

“These guidelines generally concern the preservation of the competitiveness of companies, their balance in the treasury, as well as the strengthening of confidence mechanisms between the administration and the taxpayer”, the General Confederation of Enterprises of Morocco (CGEM) said in a statement.

In its proposals, CGEM urged elected officials to mobilize revenues for financing public policies and investments, as well as acting on taxation in favor of solidarity, innovation, competitiveness, and sustainability in order to face the challenges related to the post-COVID economic recovery and achieving the ambitions of the New Development Model.

To this end, CGEM recommended the initiation of the reduction of the IS rate to reach the internationally accepted level; the reduction of the minimum contribution “in view to its abolition within 5 years”; the reform of local taxes; the generalization of a VAT at 10% on solar equipment as well as the establishment of a targeted R&D tax credit.

The proposals that are being put forward seek to ensure the financial balance of companies while maintaining their financing capacity by speeding up VAT reform. Regarding the productive fabric, CGEM suggested continuing to support investment through the strengthening of public procurement by maintaining the allocated budgets and the encouragement of “made in Morocco”.

By Nouhaila El Bouhli

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