13 °C Clear sky Rabat

News
Monday 15 November 2021

House of Representatives Adopts by Majority 2022 Appropriation Bill

House of Representatives Adopts by Majority 2022 Appropriation Bill

The House of Representatives adopted, Saturday evening in plenary session, by a majority the entire Appropriation Bill (PLF) for the year 2022.

The PLF-2022 received the approval of 206 deputies, while 67 others opposed it and without any abstention and this, after the approval of a series of amendments and after its vote in the Committee on Finance and Economic Development in the House of Representatives by majority on November 09.

At the beginning of this plenary session, the Minister of Economy and Finance, Nadia Fettah Alaoui, said that of the 129 amendments proposed for the first part of this project, 20 were withdrawn and 31 accepted.

The main amendments adopted concern the broadening of the application base of the social contribution of solidarity on profits for the year 2022, the reduction of the corporate tax rate (IS) for industrial companies from 28% to 26% (instead of 27%). They also concern the reduction of the minimum tax rate from 0.45% to 0.40%, the reduction of the coefficient of profit margin applied on the profession of hairdressing and aesthetics from 30% to 20% and the profession of tobacco seller from 4% to 3%, in addition to including the horse dealer among the category "trade and private activities" to benefit from a rate of 4%.

The accepted amendments also include the extension of the exemption from income tax (IR) for income paid to the employee for the first time until December 31, 2022, in addition to the reduction of import charges applied to plastic type ethylene terephthalate from 10% to 2.5% and the application of import charges on tubes and incandescent lamps at a rate of 17.5% instead of 40%. Also included is the phasing in of domestic consumption taxes (ICT) on electrically powered items, appliances and equipment and the reduction of ICT components for electronic devices and vehicle batteries.

In addition, these amendments consist of allowing associations working in the field of combating the effects of natural disasters to benefit from subsidies granted by the Fund for Combating the Effects of Natural Disasters and to dedicate the revenue from ICT applicable to electronic devices and vehicle batteries to the Fund for Supporting Social Cohesion.

Meanwhile, Fettah Alaoui said that the PLF-2022 is based on three priorities namely, employment, health and education, with about 9 billion dirhams of additional funds, adding that the government has placed the social sectors and the preservation of the purchasing power of citizens at the top of the guidelines of this bill.

"In response to your interventions on price increases and the protection of the purchasing power of citizens, we affirm first of all that the government has placed the social sectors and the preservation of the purchasing power of citizens at the head of its orientations for this project," she said.

The Minister also stressed that the government also attaches great importance to the support of the regions to accelerate the implementation of regional development plans (RDP), especially projects and priority programs that will be funded under contracts-programs between the state and the regions.

MAP 14 November 2021