El Azami: Agricultural operators will be progressively taxed
Lemag: On the sidelines of the 2nd national conference on taxation held on 29 and 30 April at Skhirate, the Minister for the Budget Driss El Azami El Idrissi described the general features of the Moroccan tax reform system.
Source : https://www.marocafrik.com/english/El-Azami-Agricu...
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"The integration of agriculture into the tax system should be considered as part of a phased approach, with a thoughtful policy that keeps this sensitive sector’s momentum and competitiveness," said the Islamist minister Driss El Azami El Idrissi, hours before the launch of the Skhirate 2nd national conference on taxation.
After noting the specificity of the agricultural sector and that the tax base is not homogeneous, Driss El Azami said that the new tax system in reflection and pre-installation, must safeguard the interests of small farmers, while allowing this area to contribute to the resources of the state.
"The main issue of the taxation of the sector, is to keep the one hand, its competitiveness and momentum initiated by the Green Morocco Plan, and secondly to contribute to an intelligent manner by the distinction between subsistence farming and large farms, "he said.
Concerning tax exemptions and tax benefits, El Azami argued they will be "reviewed on the basis of their economic, financial and social effectiveness, in order to increase the performance of the Moroccan tax system and the release of new public resources to finance social spending and economic infrastructure. "
Note that the exemption regime in the agricultural sector was installed in 1984, following a decision of the late King Hassan II and extended twice.
Large farmers were mobilised each time to pressure the government for an extension until 2000.
In 2009, a further extension of this exemption was decided by King Mohammed VI and is expected to expire in December 2014.
In its latest report, the Economic, Social and Environmental Council (CESE) has addressed the issue of taxation of the agricultural sector, saying it is necessary to impose on farms of a certain size, calling the same to develop a system of agricultural tax and adapted to work in a generalised mechanism of agricultural accounts that would drive the tax transaction of items related to the sector, in terms of accuracy and fairness.
Note that the 2nd national conference on taxation, will focus on three main themes: 'Taxation and equity', 'taxation and competitiveness' and' tax administration and user expectations. "
After noting the specificity of the agricultural sector and that the tax base is not homogeneous, Driss El Azami said that the new tax system in reflection and pre-installation, must safeguard the interests of small farmers, while allowing this area to contribute to the resources of the state.
"The main issue of the taxation of the sector, is to keep the one hand, its competitiveness and momentum initiated by the Green Morocco Plan, and secondly to contribute to an intelligent manner by the distinction between subsistence farming and large farms, "he said.
Concerning tax exemptions and tax benefits, El Azami argued they will be "reviewed on the basis of their economic, financial and social effectiveness, in order to increase the performance of the Moroccan tax system and the release of new public resources to finance social spending and economic infrastructure. "
Note that the exemption regime in the agricultural sector was installed in 1984, following a decision of the late King Hassan II and extended twice.
Large farmers were mobilised each time to pressure the government for an extension until 2000.
In 2009, a further extension of this exemption was decided by King Mohammed VI and is expected to expire in December 2014.
In its latest report, the Economic, Social and Environmental Council (CESE) has addressed the issue of taxation of the agricultural sector, saying it is necessary to impose on farms of a certain size, calling the same to develop a system of agricultural tax and adapted to work in a generalised mechanism of agricultural accounts that would drive the tax transaction of items related to the sector, in terms of accuracy and fairness.
Note that the 2nd national conference on taxation, will focus on three main themes: 'Taxation and equity', 'taxation and competitiveness' and' tax administration and user expectations. "
Source : https://www.marocafrik.com/english/El-Azami-Agricu...