On Monday, June 28th, 2021 at the Royal Palace in Fez, His Majesty the King Mohammed VI, may God assist him, chaired a Council of Ministers, in which two founding texts in the form of framework bills, were approved. It concerns the framework bill relating to tax reform and another one dealing with the reform of public establishments and enterprises.
According to the press release from the
Royal Cabinet, at the beginning of the Council’ proceedings, Mr. Mohamed Benchaaboun,
Minister of Economy, Finance and Administration Reform, made a presentation to
His Majesty the King on the draft Framework law on tax reform.
“Prepared in application of the High Royal
Directions and on the basis of the recommendations of the National Conference
on Taxation held in May 2019, this project aims to establish an efficient,
fair, equitable and balanced tax system, which makes it possible to mobilize
all fiscal potential to finance public policies, promote economic development
and achieve social inclusion and cohesion.
The
purpose of this project is to set the basic principles and objectives relating
to this reform, which mainly relate to:
First: The strengthening of fundamental
rights through a tax system based on respect for the equality of all before
taxes, tax fairness, the right to information and the guarantee of the rights
of the taxpayer and those of the administration;
Second: The protection of the taxpayer
against any abusive interpretation of legal texts by the tax administration,
the strengthening of the relationship of trust between this administration and
the taxpayer, guaranteeing the right of appeal for both parties and the
independence of the competent tax authorities, in addition to the creation of a
National Tax Observatory;
Third: The establishment of a tax system
in the service of competitiveness, innovation and job creation and the
mobilization of the full tax potential to guarantee better financing of public
policies;
Fourth: The orientation of the tax system
towards strengthening solidarity, particularly for the financing of social
safety nets, such as medical coverage, family allowances, as well as for the
reduction of social inequalities. It also aims to reform the taxation of local
authorities in order to guarantee them permanent resources, in line with the
State's determination to review and simplify the rules relating to these taxes
and their harmonization with the provisions governing state taxes”.