2021 Appropriation Bill: “Solidarity Contribution” To Be Limited To Companies with Net Profit Exceeding 5 mln MAD, Official

Rabat – The solidarity contribution will be limited to companies with net profit exceeding 5 million dirhams, announced, on Monday in Rabat, Minister of Economy, Finance and Administration Reform Mohamed Benchaâboun.

 

“The feeling of solidarity reinforced during the health crisis linked to Covid-19, will be fostered through the adoption of a solidarity contribution on profit and income”, said Benchaâboun during his presentation on the 2021 appropriation bill at the two houses of Parliament, noting that this participation will be limited to individuals with annual net salary of 120,000 dirhams, or 10,000 dirhams per month, and companies with profit exceeding 5 million dirhams.

It is expected that this participation will make it possible to collect 5 billion dirhams for the Social Cohesion Support Fund, he stressed, noting that the fund’s attributions will be broadened to include organizations of social welfare, and it will bear the name of “Support Fund for Social Welfare and Cohesion”.

On another topic, the Minister stressed that the launch of the generalization of compulsory health coverage, starting January 1, 2021, is a first phase within the framework of the large-scale societal reform linked to the generalization of social coverage launched by HM King Mohammed VI during the Throne Speech.

In this context, the Minister went on, the generalization of compulsory medical coverage will be carried out through the acceleration of the adoption of amendments relating to the legislative and regulatory framework, which will help establish a compulsory health insurance (AMO) for the benefit of precarious categories which currently benefit from the RAMED scheme, and speed up the generalization of coverage for the benefit of the self-employed people.

He recalled, on this occasion, that the project of this reform will span two years, and will require nearly 14 billion dirhams, including 9 billion dirhams financed by the State. A total of 4.2 billion MAD will be mobilized for the year 2021.

This strategic project will be accompanied by the adoption of a radical tax reform which will make it possible to collect the taxes imposed at the national and local levels on low-income professionals, in a single professional contribution, said Benchaâboun, noting that this tax reform will strengthen the trust of this category of taxpayers, by increasing their chances of getting involved in the formal sector.

He added that the government will support the project of the generalization of compulsory health coverage by upgrading the health offer through the increase in the budget allocated to the health sector for the year 2021 by nearly 2 billion dirhams.

In addition to the large-scale project related to social coverage, Benchaâboun noted that the government will take charge of setting up various social projects, notably the acceleration of the reform of the education and training system.

In addition, the implementation of the provisions of the framework law relating to the system of education, training and scientific research will continue, through the gradual generalization of preschool education, the strengthening of social support for pupils and students, the development of school and university offer, as well as the implementation of the new roadmap for the development of vocational training and the promotion of scientific research.

Thus, an additional budget of 4 billion MAD will be allocated to the education sector, he said, noting that 23,500 jobs will be reserved for the education and health sectors, that is an increase of 3,500 jobs per year compared to 2020.

In addition, measures will be undertaken to support the 3rd phase of the National Initiative for Human Development (INDH) to make up for shortcomings in basic infrastructure and services, support people in precarious situations, improve income, facilitate the economic inclusion of young people and boost the human capital, concluded Benchaâboun.

 

Source: Agency Morocaine De Presse

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