Morocco’s draught budget for 2023, according to finance minister Nadia Fattah Al-Alawi, is targeted at raising taxes on banks and large corporations as part of the government’s effort to raise money to close the country’s budget deficit and fund social protection initiatives.
The Minister has informed the lawmakers that the draught budget that must be approved by Parliament aims to raise the corporate tax over the next four years to 20% for businesses with annual profits under 100 million dirhams (nine million dollars) and to 35% for businesses with annual profits over 100 million dirhams, while banks and insurance companies will be subject to a 40% tax.
She also mentioned that the government plans to lower income taxes and that stock taxes will drop from 15% to 10% over the course of the next four years.
To “defend the health of residents,” she continued, she plans to progressively impose a charge on goods that contain sugar.
The government anticipates a combined 14.5% increase in tax and customs revenue in 2023, which will assist in lowering the deficit from 5.0% of GDP to 4.5%.
3 percent is anticipated this year, bringing down the national debt to 70% of GDP.
Assuming yearly inflation of two percent, the 2023 budget also intends to achieve an economic growth rate of four percent, up from the 1. 5 percent anticipated this year.
According to the minister, state investments would rise by 50 billion dirhams to 300 billion dirhams in the upcoming year.
In 2023, Morocco plans to raise business and bank taxes.
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