Business taxation, in particular the corporate tax scale (IS), was at the center of the debate at the House of Representatives’ Committee on Finance and Economic Development, which met on Tuesday.
During this meeting devoted to the examination of the 2022 finance bill (PLF2022), which took place in the presence of the Minister of Economy and Finance, Nadia Fettah Alaoui, and the Minister Delegate in charge of the Budget , Faouzi Lekjaa, the members of the committee looked at various articles proposed in the bill, including that relating to the scale of the corporation tax, which the PLF proposes to reduce from 28% to 27% for industrial companies whose net profit is less than 100 million dirhams.
In this regard, Faouzi Lakjaa stressed that this measure is part of the continuity of the implementation of the gradual convergence of corporate tax rates towards a unified rate, as well as the implementation of the fundamental objectives of the framework law on tax reform. He also indicated that this proposal aims to remove the duality of tax rates based on the destination of the product, recalling that the Finance Law for the 2020 budget year had started the process of convergence of corporate tax rates towards a rate unified for the industrial sector, following the recommendations of the 3rd National Taxation Meeting aimed at reducing the tax burden on the industrial sector as one of the job-creating sectors.
Faouzi Lakjaa has, moreover, indicated that it is proposed to remove the progressivity of the rates of the current scale of the IS and to adopt a method of calculation according to proportional rates, with a view to simplifying the structure of the rates.
For her part, Nadia Fettah Alaoui emphasized the creation of the single professional contribution system aimed at improving the professional contribution system, with a view to grouping professions into unified categories, recalling in this sense that the ministry as well as that the government departments concerned have held meetings with representatives of all professions as well as the most representative unions.
This proposal also aims to integrate the informal sector in addition to accelerating the implementation of the work of generalization of social protection, she added.
Regarding the social solidarity contribution, the Minister specified that it meets the objectives of the framework law relating to the mobilization of the full fiscal potential for the financing of public policies.
Nadia Fettah Alaoui further noted that this measure will strengthen economic development and social cohesion, insofar as it contributes to effective redistribution and the reduction of inequalities, with a view to strengthening justice and broadening of the base. In addition, the members of the committee discussed other articles relating, among other things, to the budget items created, to the income of athletes and to the implementation of advanced regionalization, while highlighting the need to comply to the provisions of the framework law on tax reform, to adopt measures aimed at strengthening investor confidence, and to encourage sectors heavily impacted by the repercussions of the Covid-19 crisis.
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