The decree relating to direct housing aid is in the final preparation phase and will see the light of day in the coming weeks, while the reforms to reduce value added tax (VAT) are expected in 2014, said the Minister Delegate in charge of the Budget, Fouzi Lekjaa.
Responding to questions from deputies during the weekly session devoted to oral questions in the House of Representatives, Fouzi Lekjaa indicated that the Minister of National Territorial Planning, Urban Planning, Housing and the City worked with various actors on the procedures related to the implementation of the decree relating to direct support for the acquisition of housing.
Thus, the minister recalled that the previous approach was based, in recent years, on supporting demand, through tax exemptions granted to owners or developers who offer housing for purchase, while the government decided, in 2022, to directly support future buyers.
As for the financing of the most vulnerable categories, Lekjaa revealed that the Intelaka program has allowed the granting of approximately 39,253 loans with an amount of financing estimated at 8.7 billion dirhams.
He added that this funding committed should create more than 112,000 jobs, adding that a set of mechanisms have been developed to help small businesses cope with the repercussions of Covid-19, first and foremost the “Damane Express” product which experienced remarkable growth, relating to nearly 50,000 loans for the benefit of these companies, amounting to more than 5.2 billion dirhams in loans, where the State’s commitment amounted to 3.7 billion dirhams.
Regarding the implementation of the tax reform, the Minister stressed that these steps, which began in 2020, will continue in 2024 “ through the implementation of a set of VAT reforms to make it fairer, without impacting businesses“.
And to add: We will try as far as possible to work towards the reduction of VAT on basic products, such as medicines, school supplies and other products“. In particular, he specified that this measure aims to reduce the prices of these products and to restore the neutrality of the value added tax.
In 2024, “ we will also look at the issue of the informal sector, which constitutes a huge burden for the national economy“, continued the minister.
In addition, Lekjaa recalled that the tax reform roadmap was at the center of the discussions in which all parties participated, through two editions of the national meetings whose conclusions aimed to broaden the tax base, which will allow reduce the tax burden on companies in general, and avoid recourse to tax incentives, which decrease from year to year, as evidenced by the reports accompanying the Finance Law.