The Minister participates at a meeting between the Government and the CGEM on the business climate in Morocco. : 20/09/2012

The Minister participates at a meeting between the Government and the CGEM on the business climate in Morocco.

The General Confederation of Moroccan businesses (CGEM) advocated, Wednesday, September 19th2012 in Casablanca, a review of the current system of VAT refund, which penalizes companies through rarely respected refund delays.  

The employers` organization stressed in this context thata more in-depth reform of the texts regulating VAT is necessary, stressed the CGEM in a statement released after the meeting held with the Head of government, Mr. Abdelilah BENKIRANE, and several Ministers on the "business climate".

In this respect, the Government was committed to include it in the agenda forthe next ?conferences on Taxation? which will take place February 2013 and which preparatory meetings will be held in cooperation with the CGEM starting by end September 2012, the same source adds.

During the various speeches of theCGEMCouncil members, participants pointed to payment deadlines, both in publicand private sectors, which threaten the cash flow of companies.

To this end, Mr. Nizar Baraka, Minister of Economy and Finance, announced the imminent setting up of an "Observatory of payment deadlines»to be domiciled at the prime minister`s office tostreamline payment system.

The press release specifies that Mr. Baraka declared, on this occasion, that circulars would be diffused soon in the administrations and various public institutionsto ensure the effective implementation of the legislation in this area because of its importance for businesses.

The Minister confirmed the dissuasive rate of 10% of the next ministerial decree, i.e. the rate of Bank Al Maghrib increased by 7 points.

As to social issues, the CGEM reiterated its wish to see the law concerning the regulation of the right to strike promulgated without delay, and insists to be involved in this process, adds the official statement, noting that "the Government confirmed having included this item in the parliament?s agenda but coordination with the different social actors is needed".

Regarding the Labor Code, the CGEM notes that some measures should be reviewed to promote the conditions for job creation. Repeating its commitment to social progress, the employers` organization asks to have a clear viewon the financing of these measures to avoid an increase in labor costs.

As for investment, "the CGEM claims that the administrative procedures must be simplified in accordance with the widespread use of new information technologies."

The CGEM also called fora real fiscal fairness by protecting the law-abiding companies and strengthening the control and repression of the informal economy, which represents unfair competition for domestic firms, the release underlines.

In addition, the press release indicates that the head of the Government recalled the important reform of justice, akey element in the life of companies, currently underway, while reaffirming its commitment to mobilize the relevant Government departments to best meet the needs of businesses.

Mr. BENKIRANE noted that this first meeting was not devoted to negotiation but it was a working session in which problems werepresentedin order to be able to address them according to their degree of priorities, specifies the CGEM in its release.

At the end of this session, the parties werecommitted to work in close collaboration and monitor the 4 outlined key measures discussed today andwhich require a strong commitment from the Government. It is a question of facilities of the act of investing andtaking entrepreneurial initiatives,labour law and cost, the difficulties of companies? cash flow and tax reform and equity tax and equal opportunities in economy.