Major Provisions in the 2009 Finance Bill

A. Maintaining a High Level of Growth

• Intensifying public sector investment
  • An 18% increase in public investments (MD 135 billion in 2009) as well as a 25% increase in state direct investments ( MD 45 billion).
  • Speeding up large scale construction projects (highways, railways and ports)
  • Setting up new zones for chemical industry (Jorf Lasfar Pole), Fisheries (Agadir Pole) and service offshoring in cities such as Oujda, Fez and Marrakech.
  • Expanding industrial zones and franchise zones together with the Tangiers Med logistics platforms.
  • Setting up major units for foodstuffs industry in cities such as Meknes, Berkane and Beni-Mellal.

• Consolidating Purchasing Power
  • Extending benefits of the "Mokawalati Program" to the entire section of young promising entrepreneurs
  • Improving household income following commitments made within the framework of social dialogue.
    • Salary increase for employees in the public service and local authorities and a 10%  increase of minimum wage over two periods except for the textile sector wherein this increase is scheduled over four periods on account of this sector’s specificity. There has also been a 9% increase in payroll expenditures of the overall budget with MD 75.5 billion.
    • Family allowance has been increased from MD 150 to MD 200 per child.
    • Alleviating the income tax through raising the exempted bracket from 24000 to 27000, downward review of  intermediate brackets and accompanying rates and the reduction of the marginal rate from 42% to 40%.
    • Several propositions have been made to the effect of increasing the deductible amount on family allowances from MD 180 to MD 360, increasing the deductible amount on Professional expenses and relaxing conditions related to benefiting from interest deductions on mortgages for main residence as well as on complementary retirement plan and life insurance.
  
  
• Promoting Exports
  • Strengthening the export potential of all businesses, especially small and medium size businesses.
    • Reducing the cost of input and finished products through lowering import duties.
    • Promoting the capitalization and the grouping of small and medium size businesses (Fiscal provision aimed at reducing the income tax by up to 10% of the amount of capital increase)
    • Setting up a special fund of the amount of MD 500 million towards promoting exports. MD 250 Million of the said amount has been earmarked for 2009.
    • A proposition has been made to the effect of simplifying customs procedures pertaining to foreign trade transactions.
  • Diversifying Sources of Growth (click here for more details)
    • Stimulating Key Sectors such as Agriculture, Water, Energy and Phosphates
    • Proceeding further with sector-based policies relating to tourism, industry proper, service industries, foreign trade, arts and crafts and fisheries.

  • Improving the Business Environment
    • Speeding up the process of reforming justice through upgrading human and financial resources by 22%.
    • Providing support for the Central Commission for the Prevention of Corruption as well as for the Council for Competition and Price liberalization
    • Setting up a Social and Economic Council in response to high orders of His Majesty the King to ensure coordination and consultancy among key social and economic players.
    • Setting up a Moroccan Agency for the Promotion of Investments to be in charge of enhancing investments along the lines of sector-based policies.

B. Consolidating the Tenets of Human Development (click here for more details)

• Increasing budget allotted to social sectors by an additional amount of MD 12 billion, which accounts for 53% of the overall open credit.
• Several measures have been taken in the domains of education, vocational training, public health, housing, urban development, youth and sports.