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Victory for retirees: tax exemption finally implemented

The House of Advisors, often relegated to an advisory role, has today become the scene of a raison d’être for Moroccan retirees. The latter, driven by the demands of several unions and associations, had pleaded for a tangible improvement in their living conditions through modifications to the 2025 finance bill. At the heart of the debates: total exemption from tax on pensions and a general increase in pensions.

With the Executive’s response today, it is a real breath of fresh air for Moroccan retirees. Indeed, after years of fierce demands and pleas, the government validated, this Monday evening in the House of Councilors, the total exemption of retirement pensions from income tax.

This measure, in the form of progressive tax relief, was also proposed and adopted as part of the modifications to the 2025 finance bill. It will be deployed in two stages: a 50% reduction in tax will be applied, before the complete abolition planned for 2026. This amendment concerns all pension funds and aims to completely eliminate the tax on pensions and life annuities, with the exception of supplementary plans.

Perseverance rewarded

During the adoption session, Fouzi Lekjaa, Minister Delegate in charge of the Budget, did not fail to congratulate the advisors for their tenacity. “ God loves the persevering servant, and your perseverance has been crowned with success “, he declared, emphasizing the importance of this historic advance for thousands of retirees.

The president of the parliamentary committee, which led the discussions on this subject, also welcomed this decision as a strong gesture in favor of social justice. Adopted unanimously by the members of the commission, this reform is the result of a consensus between the different political groups and unions, all united behind the idea of ​​reducing the tax burden on retirees.

Khalid Sati, parliamentary advisor affiliated with the National Union of Labor in Morocco (UNTM), was delighted with this victory. “ We had proposed this amendment several times in the past, but it had never been accepted. Today, the government is finally responding favorably to this legitimate request. The main objective remains to improve the living conditions of retirees, a category which has been neglected for too long. »

This progress is not limited to a simple tax exemption. It symbolizes an important step towards recognizing the contribution of retirees to Moroccan society. For decades, these citizens have participated in building the economic and social fabric of the country. However, their pensions, often insufficient, did not allow them to cope with the constant rise in the cost of living.

The unions, which played a key role in this advocacy, however, insist on the need to go even further. They are now demanding a general increase in pensions and additional social measures, such as access to preferential services in health, transport and leisure.

A measure that opens the way to other reforms?

While this decision is welcomed by all, it nevertheless raises questions about the financial impact for the State. The removal of this tax represents a shortfall for public coffers, already faced with budgetary constraints. To remedy this, some advisers are calling for better management of pension funds and accumulated support from the government.

For Moroccan retirees, this reform marks the start of a long-awaited change. It remains to be seen whether the government will have maintained this momentum by responding to the other demands of this vulnerable segment of the population. But, for now, the primary satisfaction: retirees can finally breathe, with the hope of a slightly more serene future.

While unions remain optimistic about the government’s response, many agree that the future of Moroccan retirees will depend on the direct involvement of the state in financing pension funds and the implementation of policies . targeted social services. The House of Councilors, often expressed for its lack of dynamism, is now at a turning point: will it be able to live up to the expectations of these citizens who, after years of work, simply ask for a dignified life?

For Khalihenna El Karch, coordinator of the CDT in the House of Councilors, the tax exemption is only a first step. He believes that the purchasing power of retirees, already weakened by soaring prices, requires a general increase in pensions. But this measure, as urgent as it is, comes up against the financial difficulties of pension funds. El Karch therefore calls on the state to inject public funds to support these funds, an effort similar to the support given to certain public companies.

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