House of Councillors: Finance Committee Approves First Part of the 2026 Finance Bill

The first part of the draft was adopted by 12 councillors, while three voted against it and one abstained.

A total of 227 amendments were submitted by the government and by majority and opposition parliamentary groups regarding the first part of the Finance Bill. Three of these amendments relate to the second part of the text. The proposed amendments were distributed as follows: 37 related to customs, 154 concerning taxation and 36 classified as miscellaneous.

Among the amendments submitted:

• The government presented 3 amendments
• Majority groups 31
• The Haraki group 31
• The Socialist and Federated Opposition group 26
• The General Union of Moroccan Workers 10
• CGEM 48
• The Moroccan Labor Union 24
• CDT 37
• Councillors Khalid Sati and Loubna El Alaoui 17

Key Approved Amendments

Among the approved tax amendments was the proposal submitted by majority groups, the General Union of Moroccan Workers and CGEM, aiming to increase the deduction of financial or material donations granted to sports companies from 10 percent to 20 percent, within a ceiling of 5 million dirhams per fiscal year.

The government also approved the proposal from the majority and CGEM to gradually expand the application of withholding tax for corporate income tax and value added tax.

This measure will apply to companies with:

• A turnover equal to or higher than 500 million dirhams starting July 1, 2026
• 350 million dirhams starting January 1, 2027
• 200 million dirhams starting January 1, 2028

A transitional provision for 2026 and 2027 will also be added to the corresponding article in the General Tax Code.

Creation of a New Special Fund

Members unanimously approved a government amendment establishing a special allocation account titled Fund for the Management of the Financial Interests of Local Authorities under Article 14 bis. The fund is intended to support the implementation of structural reform of local taxation, particularly the transfer of assessment and collection responsibilities from the Kingdom’s Treasury to the Directorate General of Taxes and municipal tax collectors.

Distribution of Budget Positions

Regarding budgeted job posts, for which some councillors requested increases in several sectors, Mr. Lekjaa explained that the allocation process follows a precise methodology based on a thorough analysis of each department’s needs as well as expected retirements this year and next year.

He stressed that the government’s current priorities include the security sector, where strengthening human and financial resources remains a key condition for safeguarding stability. He also highlighted education and health as priority areas.

Editorial team/le7tv