The PLF for the 2021 financial year provides for a total of 13 billion dirhams (MMDH) of tax expenditures for the benefit of households, underlined, Friday in Rabat, the Minister of the Economy, Finance and Reform of the administration, Mohamed Benchaâboun. “The government ensures the preservation of the purchasing power of the middle class. This is evidenced by the PLF-2021 which, despite the impact of the economic situation on the resources of the General State Budget, provides for more than MAD 14 billion for the commitments of the government within the framework of the social dialogue and 13.6 billion dirhams for the continuation of the subsidization of the basic consumer goods “, said Mr. Benchaâboun in his response to the interventions to the Committee of finance, planning and economic development under the jurisdiction of the Chamber of Advisors, during the general discussion of the PLF-2021.
The Minister also recalled the main fiscal measures taken in favor of households in recent years, in particular the reduction of the tax burden borne by this class, by restructuring the income tax scale. (IR) in order to allow a tax reduction proportional to income, reports the MAP. It also involves the promotion of savings through the introduction of several incentive tax provisions linked to pension insurance, life insurance and capitalization contracts, as well as to stock savings plans, education savings and business savings, he added. These tax measures, continued Mr. Benchaâboun, also relate to the encouragement of households to acquire housing for their primary residence, by granting them tax incentives such as deductibility, within the limit of 10%, of the total taxable income of the amount of interest. relating to the loan granted to them, in addition to the exemption from the social solidarity contribution on deliveries to oneself of the construction of personal housing whose area does not exceed 300 m, established by the Finance Act of 2013 .
The minister also cited the raising of the value added tax threshold from 180,000 dirhams to 500,000 dirhams in favor of small manufacturers and small service providers, adding that the last measure concerns the extension, until June 30 2021, the reduction of registration fees for the benefit of home buyers and the increase in the amount of the taxable base to 4 million dirhams (MDH), which will facilitate the access of the middle class to home ownership. housing. “And if we add to all these efforts, an amount of approximately MAD 10 billion allocated to various social programs such as the National Initiative for Human Development, the Disparities Reduction Program and Tayssir, in addition to the great effort of investment estimated at 230 billion dirhams, the adoption of the solidarity contribution in no way goes against the counter-cyclical budgetary policy adopted by our country in the face of this crisis “, he argued. Regarding the solidarity contribution, which will be applied to salaries of more than 20,000 dirhams per month, it concerns only 1.24% of employees, also indicated, Mohamed Benchaâboun. “As agreed with the majority and opposition groups in the House of Representatives, the solidarity contribution threshold will be raised from 120,000 to 240,000 dirhams annually, or from 20,000 dirhams of monthly salary. To this end, the solidarity contribution will be applied for 1.24% of employees, “said Benchaâboun.
And remember that for businesses, the solidarity contribution has been lowered to 1 million dirhams instead of 5 million dirhams. The rate applied will be gradual, ie between 1.5% and 3.5% of profits. The PLF-2021 is based on three major orientations, namely the acceleration of the implementation of the recovery plan for the national economy, the launch of the first phase of the generalization of social coverage, from January 21, 2021 , and the strengthening of the bases of the exemplary nature of the State and the optimization of its functioning. Regarding the ratio of the treasury’s debt to GDP, it should reach 76% at the end of 2020, after having decreased to 64.9% in 2019, added the Minister of the Economy.
“Taking into account the double impact of the fall in growth and the increase in the budget deficit, the ratio of treasury debt to GDP should reach 76% at the end of 2020, after having marked in 2019 its first decline in ten years when it stood at 64.9%, “Benchaâboun said. This increase, an inevitable consequence of the unprecedented health and economic crisis, like the majority of countries in the world, will not significantly affect debt sustainability given the available margins and the sound structure of the debt. debt, added the Minister, noting that the associated cost and risk indicators remain at safe and controlled levels.
And to explain that the share of the external debt does not exceed 20% of the total debt of the treasury, while the majority of this debt is contracted on favorable terms, noting that the average remaining repayment period is about 7 years at the end of the first half of 2020, an improvement compared to the end of 2019. In addition, the share of short-term debt does not exceed 13.2%, which reduces the risk of refinancing, he said. statement.
In addition, Benchaâboun indicated that the average cost of the debt of the treasury should improve this year thanks to the significant fall in the rates of treasury bills and the maintenance at low levels of interest rates on the international markets on which depends. the cost of external debts contracted with donors or the international financial market. And to note that given the economic recovery plan to stimulate economic activity and the acceleration of administrative reforms to control the budget deficit, the evolution of the debt burden of the treasury should be gradually controlled to reduce the ratio of l debt and preserve the solvency of Morocco.