Investments: Istiqlal Economists Call for Increased Investment Caps for Savings Products

In Morocco, the taxation applied to investments is generally less favorable than that in many OECD countries. While there are existing provisions such as exemptions from income tax, dividend tax, and capital gains tax for collective investments, their impact remains limited. These tax advantages are not only poorly understood by savers but also unattractive due to investment caps that have remained unchanged for over a decade, despite inflation eroding their real value. The Association of Economic Intelligence (AEI) proposes updating these caps to revitalize savings dynamics and support purchasing power. Specifically, it recommends raising the cap on the Company Savings Plan (PEE) from 600,000 to 1 million dirhams, while increasing the annual contribution from the company to 15% of taxable salary income, up from the current 10%. Similarly, it suggests increasing the cap on contributions to the Housing Savings Plan (PEL) from 400,000 to 600,000 dirhams and the cap on the Education Savings Plan from 300,000 to 500,000 dirhams. These adjustments aim to make savings products more attractive and stimulate both productive investment and the creation of a financial cushion for middle-class households. These proposals come at a time when the Moroccan economy shows encouraging fundamentals. For 2025, growth is expected to reach 4.5%, with controlled inflation slightly above 1% and an initial decline in unemployment. Recent capital market activities have been successful, boosting investor confidence and providing new financing opportunities for public and private projects. However, the AEI emphasizes the need for caution. Forecasts for 2026 indicate that this positive trend is still dependent on external factors, including cereal production, commodity prices, and international climate developments. These elements could undermine stability if safety margins are not strengthened. Beyond the technical aspects, revising savings taxation aligns with a broader goal: to expand and strengthen the Moroccan middle class. In a country where social mobility remains a central issue, encouraging savings mechanisms offers households long-term protection and investment prospects. It also serves as a way to channel resources into the productive economy within a more equitable and incentivizing tax framework.