The overall amount of tax expenditures increased from 27.82 billion dirhams (billion dirhams) to 29.50 billion dirhams between 2020 and 2021, registering an increase of 6%, according to the Ministry of the Economy and Finance.
This increase is explained by the increase in tax expenditures relating to VAT of 839 million dirhams (MDH) and Registration and Stamp Duties DET (+814 MDH), specifies the ministry in a report on tax expenditures. , accompanying the 2022 Finance Bill.
On the other hand, tax expenditures relating to corporate tax recorded a decrease of around MAD 990 million, adds the same source.
Tax expenditures are legislative or regulatory provisions that derogate from a “tax standard”. These exemptions constitute an important tax issue insofar as they reduce State revenue and therefore constitute a cost for the Treasury, recalls the ministry.
In this wake, the ministry announces that the number of measures identified qualified as tax expenditure increased from 302 in 2020 to 306 in 2021. Among these measures, 259 were the subject of evaluation in 2021, that is to say 85% of the measures. identified.
With an almost stable structure between 2020 and 2021, the tax expenditures recorded in 2021 are attributable in particular to the real estate sector (22.2%), to the security and provident sector (19.8%) and to the production sector. and electricity and gas distribution (15.0%), notes the report.
A breakdown by type of beneficiary of tax expenditures shows that in 2021, households and businesses hold the majority share of tax expenditures with 95% (51% for households and 44% for businesses).
In 2021, the most important derogatory measures mainly concern the support of purchasing power (5.72 billion dirhams, or 19.4%), the mobilization of domestic savings (4.99 billion dirhams, or 16.9%) and facilitating access to housing (4.48 billion dirhams, or 15.2%).
In 2021, economic incentives benefit from the majority of tax expenditures, i.e. 54.7%. As for social incentives, they benefit from 44.7% of the share of overall tax expenditure, and those with a cultural vocation benefit only from 0.5%.
The report also recalls that the State has introduced into its tax policy, over the years, several measures with the aim of granting tax relief to certain categories of taxpayers or sectors of activity. These measures, known as “tax expenditures”, allow the State to achieve its strategic objectives whether in economic, social, cultural or other terms, and this by taking several forms ranging from the reduction of tax rates to tax exemption.
Tax expenditures can therefore have a significant impact on the State budget, underlines the report which underlines the need to assess their efficiency, to quantify the cost of each of them and to assess the relevance of maintaining or eliminating them.