Morocco: Extension of tax breaks for listed firms
Description
Firms listed on the Casablanca stock exchange were granted extended tax breaks for the period 2010 - 2012. This is to encourage more firms to list on the exchange. The listed firms will therefore pay 50% less tax. This initiative is to increase the number of individual investors on the exchange from 120,000 to 500,000. News reports suggest that the first foreign firm is expected to be listed on this stock exchange this year.
As this measure does not discriminate between foreign and domestic firms per se, it is given a 'green' classification under the GTA. Of course, the measure can be commercially relevant to domestic and foreign firms without being discriminatory.
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | |
| Is there any evidence that alternatives to the proposed measure were considered? | |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | |
| Was such evidence identified? | |
| Is such evidence publicly available? | |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | |
| Did the government state its intention to review the measure within one year of implementation? |
Date Discovered: 12/02/2010
Implemented: Yes
Date of inception: 1 Jan 2010
GTA Evaluation: Green
Source:
African Development Bank, FCMG Weekly Update. http://www.afdb.org/fileadmin/uploads/afdb/Documents/Generic-Documents/F...
Reuters Africa, 'Update 1 - Morocco extends tax break to boost bourse listing,' http://af.reuters.com/article/moroccoNews/idAFLDE60E1L220100115
Government Response:
- 212 reads
