Covid-19 crisis – main legal and tax provisions: A webinar by the CCSM

On 14 July, 70 people gathered to attend this first virtual event organised by the CCSM. Moderated by Pierre-Yves Morier, Deputy Head of Mission and Counsellor at the Embassy of Switzerland in Morocco, this meeting in webinar format saw the participation of Karim Mouttaki and Hakim Marrakchi, respectively Presidents of the Legislation and Legal Affairs Commission and of the Taxation and Customs Commission at the CGEM. On the agenda: sharing the main legal and tax provisions put in place by Morocco following Covid-19.

“As part of the management of this crisis, Morocco quickly mobilised to support the populations most affected by Covid-19, in particular through the creation of a Special Fund, as well as the setting up of an Economic Watch Committee (CVE) to assess and anticipate the economic and social repercussions of the pandemic.” It was with these words that Karim Mouttaki, President of the Legislation and Legal Affairs Commission at the CGEM, opened this webinar.

Support measures for companies

Given the urgency of the situation, since the start of the pandemic Morocco has adopted a series of support and assistance measures for employees and private-sector companies put in difficulty by the Covid-19 crisis. “The adoption of Law 25-20, which defines the conditions and criteria for an employer in difficulty and grants an allowance to employees and trainees on work-integration training for the temporary stoppage of work over the period from 15 March to 30 June, is a living illustration of Morocco’s determination to support the economic fabric”, said Karim Mouttaki during his presentation.

Another support measure for companies is the ‘Damane Oxygène’ mechanism set up by the Caisse Centrale de Garantie (CCG). This guarantee product aims to mobilise financing resources for companies whose cash position has deteriorated due to the decline in their activity. In particular, it covers 95% of the loan amount and enables banks to quickly set up exceptional overdrafts for the companies concerned.

Adoption of an Amending Finance Law

For the past few days, reactions have been flowing since the adoption of the Amending Finance Law for 2020. During his presentation, Hakim Marrakchi, President of the Taxation and Customs Commission at the CGEM, notably went over the outlines of this approach. “The Amending Finance Law was adopted in order to revise the various projections and to put in place a battery of measures capable of reviving the Moroccan economy, which has been deeply affected by Covid-19”, the speaker explained.

Thus, with a view to encouraging local production, reducing the trade balance deficit and improving customs revenue, Morocco has opted to increase import duties on certain finished products from 30% to 40%. For the speaker, the aim is above all to encourage the consumption of Moroccan products and to opt for national preference as regards companies and products in public procurement.

At the end of this webinar, the speakers were unanimous on the importance of rolling out a comprehensive and integrated recovery plan that will support the gradual restart of the various sectors of the national economy. A plan involving all stakeholders and placing the emphasis on responsible dialogue around the economic and social challenges relating to the exit from the crisis.