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Lacqua: Increase in tax expenditures to support purchasing power to 7.566 million dirhams in 2024
The Minister Delegate to the Minister of Economy and Finance in charge of the budget, Fouzi Lekjaa, announced that the tax expenditures allocated to support purchasing power will rise from 6.576 million dirhams in 2017 to 7.566 million dirhams in 2024, as part of efforts to alleviate the tax burden on families and improve their living conditions.
Lekjaa explained in a written response to a question from the National Rally of Independents party in the House of Councillors regarding the contribution of the Ministry of Economy and Finance to achieving sustainable development goals that this increase reflects the ministry’s concern for citizens’ daily living conditions. He highlighted that the framework law for tax reform in 2021 established a comprehensive reform aimed at expanding the tax base, simplifying the tax system, enhancing tax justice, and combating evasion, thereby allowing for more effective funding of social and economic policies.
The minister pointed out that tax measures were not limited to environmental and energy dimensions but also included expanding access to health services and supporting the pharmaceutical industry. Under the 2018 Finance Law, treatment drugs for serious diseases, including meningitis, and equipment for the Mohammed VI Foundation for the Protection of the Environment were exempted from value-added tax upon importation, along with equipment for the Cancer Research Institute to support health and scientific research.
He added that these measures were reinforced in the 2023 and 2025 Finance Laws by exempting medicines, particularly those for chronic diseases, from import duties and reducing customs tariffs to facilitate access to essential medicines and strengthen the national pharmaceutical industry.
Regarding environmental commitments, Lekjaa clarified that the ministry established an environmental tax on plastics since the 2014 Finance Law, which was followed in 2017 by a reduction in customs duties on solar panel components. In 2018, electric and hybrid vehicles were also exempted from registration tax, as part of its support for renewable energy and clean transport, in line with the national strategy for sustainable development.
He noted that the 2020 Finance Law expanded the exemption from value-added tax to include solar energy pumps and sustainable irrigation equipment, while the 2022 Finance Law increased tariffs on traditional incandescent bulbs and reduced them on lithium batteries and solar panels to encourage energy efficiency and the adoption of clean energies.
He added that this policy continued in 2024 and 2025 through the reduction of tariffs on lithium batteries, electric trucks, and solar inverters, affirming the adoption of a green tax and customs policy aimed at reducing dependence on fossil fuels and enhancing a sustainable economy.
The government official also emphasized that the ministry adopted an internal tax policy to encourage energy efficiency and resource management sustainably, by imposing internal consumption taxes aimed at high-energy-consuming devices and recycling electronic devices, alongside updating customs tariffs favoring eco-friendly products.
In the climate context, Lekjaa mentioned the ministry’s involvement in preparing the nationally determined contribution 3.0 for 2025-2036, by launching the “Climate Support for Nationally Determined Contributions” program, funded by the World Bank, aimed at aligning adaptation and mitigation commitments with multi-year budget programming.
He added that, in coordination with the sustainable development sector, efforts were made to align financing for climate projects included in the nationally determined contribution with a three-year budget framework, along with working on the “Budget Tagging for Climate Purposes” project to identify public resources allocated to combating climate change.
At the institutional level, Lekjaa explained that a central unit was established within the Ministry of Economy and Finance to enhance climate action, tasked with supporting decision-making regarding green commitments, environmental taxes, and integrating environmental considerations into public procurement and budget processes.
He noted that public procurement, which represents about 20% of gross domestic product, serves as a strategic lever for sustainable growth, emphasizing that the 2023 public procurement reform reinforced the integration of energy efficiency principles and resource and environmental protection, alongside finalizing the green public procurement guide and establishing mechanisms for tagging environmentally-focused tenders through the national public procurement portal.
The government official concluded by affirming that the 2023 Finance Law established a reform of the corporate tax system through adopting progressive rates that incentivize investment, while the 2024 Finance Law continued reforming the value-added tax by unifying its rates with exemptions for essential materials, supporting the purchasing power of the most vulnerable groups.
