Moroccan Reform Strengthens Fiscal Transparency

LOW TAX

by Lorys Charalambous, Tax-News.com, Cyprus

The reform of Morocco’s organic finance law is intended to increase the transparency of the country’s public policy, particularly as regards the public finances and fiscal objectives.

According to Moroccan Finance Minister Nizar Baraka, the reform of the organic finance law (LOF) is designed to shape and to enhance the transparency of public policy, enabling parliament to have better control of the veracity of both state finance figures and objectives set by the government. Parliament will in future have access to greater information pertaining to debt, for example, to enable lawmakers to assist the government in reaching its fiscal targets.

There will be a multi-annual vision of government programmes with set objectives, and performance indicators to show if the objectives have been met or not, the finance minister explained.

Implementation of the LOF will, however, be delayed until 2014, Baraka revealed.

Alluding to the country’s budget deficit, which is to be reduced to 3% in 2016, Baraka underlined the importance of adopting a pragmatic approach integrating both revenue- and expenditure-based measures, noting that the ministry is currently preparing to hold a conference on taxation in February 2013.