The Moroccan government approved a decree on Thursday granting temporary corporate tax exemptions to companies in the defense and security equipment industry, including manufacturers of arms and ammunition.
The measure is intended to strengthen Morocco’s defense sector by reducing the tax burden on companies producing critical defense materials.
During the weekly government meeting, the Council of Ministers adopted Decree No. 2.24.966, amending Decree No. 2.17.743. The amendment expands the list of industrial activities eligible for temporary corporate tax exemptions under Article 6 (II-B-4) of Morocco’s General Tax Code.
The tax exemption applies to companies manufacturing defense and security equipment, arms, and ammunition.
A statement issued after the meeting indicated that the decree seeks to officially recognize these activities as tax-exempt, providing financial relief to boost the industry.
The decree is part of efforts to enhance Morocco’s self-reliance in defense manufacturing by offering financial incentives to companies in the sector.
Abdeltif Loudiyi, Minister Delegate in charge of the National Defense Administration, presented the decree on behalf of Fouzi Lekjaa, the Minister Delegate to the Minister of Economy and Finance, responsible for the budget.