Moroccan Government to Approve Natural Disaster Tax

Men walking by the main road between Sidi Ifni and Guelmim that was completely destroyed by the floods (2015). Credits: Al Jazeera

Rabat – The Moroccan Government is planning to approve draft Decree No. 2.19.244 in a meeting next Thursday, September 12.

The “Solidarity Tax against Disastrous Events” will be part of the Solidarity Fund against Disaster Events. The Council of Government approved the establishment of the fund in accordance with the law.

The Government was supposed to approve the draft on April 18, but the approval was postponed.

The decree outlines the introduction of a new tax of 1% on premiums and contributions paid under insurance contracts, with the exception of life insurance contracts.

It also specifies the list of natural disasters covered by the scheme for the consequences of disastrous events (Law n°110.14) adopted in 2016. The scheme is designed to cover disasters such as floods, earthquakes, and tsunamis.

This scheme includes two insurance systems. The first offers insurance for the victims with an insurance contract; the second is allocated for the victims with no insurance contract.

According to Article 64-7 of Law n°110.14, the maximum compensation per event can not be inferior to MAD 2 billion in the case of a disastrous event due to natural causes, and 300 MAD million when it is due to man-made violent actions.

Recent floods in Morocco

The Government’s decision to focus on the draft decree comes in light of the recent devastating floods hitting several regions across Morocco.

The floods and heavy rains have damaged cities and caused many casualties. Heavy rainstorms and floods hit the province of Taroudant on August 28, killing 8 people in Tizert village when the river overflowed onto a football pitch.

In the city of Tata (180 km southeast of Taroudant), heavy rains flooded the homes of 200 locals.

On September 8, a bus connecting Casablanca and Rissani, a town in Errachidia Province, fell off the Oued Damchan bridge. The accident was caused by similar floods.