CGEM: Morocco’s 2021 Finance Bill Should Relax Taxes on Companies

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CGEM President Chakib Alj. Photo credit: CGEM

Rabat – The General Confederation of Enterprises in Morocco (CGEM) has called for a more lenient tax system for companies in the 2021 Finance Bill.

In a press conference held on Wednesday, September 9, CGEM President Chakib Alj suggested the government revise taxes and customs that hinder the development of businesses in Morocco.

He urged the Moroccan government to revise the tax system in the 2021 Finance Bill and orient taxes towards consumers rather than producers.

The suggestion would significantly reduce the production costs of Moroccan companies. However, it might come at the expense of Moroccan consumers if the final prices for products increase due to the new consumption taxes.

The recommendation is one of several ideas Alj proposed for the 2021 Finance Bill in order to “lay the foundation for a competitive economy and restore confidence to business leaders.”

“Preserving the economic fabric and improving the competitiveness of Moroccan companies is one of four fundamental axes that the Finance Bill should consider,” Alj said.

In addition to the tax system reform, the businessman urged the government to prioritize purchasing Moroccan products and integrate a social dimension in the finance bill.

COVID-19 should not stop the economy

Commenting on the COVID-19 pandemic, Alj encouraged companies to adapt to the situation and “learn to live with the virus.”

“Our assumption that the lockdown would eradicate the virus turned out to be false. We have no other choice but to learn to live with it,” he said.

The CGEM president believes the COVID-19 crisis can be an opportunity to address long-lasting economic issues, such as the prevalence of the informal sector.

One solution to integrate informal workers into the formal sector would be to further promote self-employment and entrepreneurship through state-sponsored programs, Alj suggested.

Read also: Morocco’s 2021 Finance Bill: El Othmani Calls to ‘Rationalize Spending’

He also recommended the establishment of a six-month job loss compensation for all sectors to help employees navigate the uncertainty of the COVID-19 crisis.

At the end of his speech, Alj announced that he will meet with Head of Government Saad Eddine El Othmani “in the coming days” to formally present the suggestions.

Source: moroccoworldnews.com