The government’s recipe to reduce the prices of basic materials

The Minister Delegate in charge of the budget, Fawzi Lakjaa, said yesterday, Monday, in the House of Representatives, that in 2024 a set of reforms will be introduced to the value-added tax “to make it more fair.”

In his answer to an oral question about “release tax reform” presented by the Authenticity and Modernity team in the House of Representatives, during the weekly oral questioning session, Mr. Lakjaa explained that the tax reform process that began in 2020 and passed through an important milestone in the year 2023 by downloading tax-related reforms On income, especially withholding from the source, and then the corporate tax, “will continue in 2024 through the introduction of a set of reforms to the value-added tax to make it more fair and without affecting businesses.”

In this regard, he stressed: “We will try as much as possible to work to reduce the value-added tax associated with basic materials, especially medicines, school supplies, and other basic matters,” stressing that this measure aims to reduce the prices of basic materials as well as restore the true definition of the value-added tax. As a neutral tax in the value chain that is not borne by a specific party.

Mr. Lakjaa also stated that in 2024, the informal sector, which constitutes a huge burden on the development of the national economy, will begin to be addressed.

He pointed out that the tax reform roadmap was the focus of discussion in which everyone participated in two different debates, the conclusions of which aimed at expanding the tax base, which would make it possible to reduce tax pressure on companies in general, and avoid resorting to tax incentives, which are known to decrease from year to year, “as it indicates.” Reports accompanying the Finance Law.

On the other hand, and in response to another question about “financing the most vulnerable economic groups,” Mr. Lakjaa revealed that the “Intilaaqah” program enabled the granting of approximately 39,253 loans, with a financing amount estimated at 8.7 billion dirhams.

He added that these committed financings are expected to create more than 112,000 job opportunities, pointing to the development of a set of mechanisms to help small businesses to face the repercussions of Covid-19, foremost of which is the “Daman Express” product, which has witnessed remarkable growth, covering nearly 50,000 loans. For the benefit of these contractors, an amount exceeding 5.2 billion dirhams of loans, the state’s commitment amounted to 3.7 billion dirhams.