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Partly good news can sometimes overshadow bad news. Many Moroccans welcomed the announcement of the gradual tax exemption for basic pension scheme retirements. However, the main parties concerned will particularly remember the government's mid-November decision to refuse indexing pensions to inflation.
This measure was deemed too costly for pension schemes that will find themselves in a delicate financial situation by 2028 if no structural reform is undertaken. Regarding the cost of living, an effort is already being made to contain the impact of inflation on the most modest, justified Mustapha Baitas.
A less costly proposal, the Chamber of Councillors unanimously approved an amendment dedicated to this tax exemption as part of the discussions on the 2025 finance bill. Proposed by the majority parties and the CGEM, this amendment provides for a gradual exemption of retirement pensions: a 50% reduction starting in January 2025, followed by a total tax exemption in 2026. However, supplementary pension plans, such as those from the CIMR, are excluded from this measure.
If this initiative is to strengthen the purchasing power of retirees, its impact remains unequal. Indeed, average pensions differ widely according to plans : 1,924 dirhams for CNSS retirees (private sector), compared to 4,861 dirhams for RCAR (public companies and local authorities) and 6,875 dirhams for CMR (public sector). This gap between private and public is mainly due to the capping of the CNSS contribution base, set at 6,000 dirhams since 2002.
A measure without impact on nearly 90% of retirees
Already in 2019, the former head of government, Saadeddine El Othmani, noted before the Chamber of Councillors that 90% of Moroccan retirees were exempt from income tax due to pensions below 5,500 dirhams per month. At the time, this tax exemption was demanded by several MPs based on a petition signed by about 25,000 people.
While it will improve the purchasing power of middle-class retirees, this gradual tax exemption of basic scheme pensions for about 10% of retirees does not meet the demands of the Moroccan Network of Retiree Organizations (REMOR). The group protested on November 30, 2024, calling for the indexation of pensions to inflation. A retirees' protest had also taken place in Rabat on October 1, 2024, the International Day of Older Persons, to denounce the freezing of pensions and the rising cost of living.
