The Moroccan government has announced its approval for a full exemption of retirees’ pensions from income tax, responding to a long-awaited social demand. This measure will be implemented in two phases, beginning with a 50% reduction in tax in 2025, followed by a complete exemption starting in 2026.
During the discussion of amendments to the 2025 Finance Bill, the government explained that this measure aims to support retirees by exempting basic pension income, while excluding supplementary pension systems.
In this context, the Minister Delegate in charge of the Budget, Fouzi Lekjaa, noted during a question-and-answer session at the House of Representatives on Monday that this reform reflects the state’s commitment to alleviating the financial burdens on retirees. He confirmed that the cost of revising the income tax will amount to approximately 10 billion dirhams, which will be borne by the state as part of its support for vulnerable groups and efforts to enhance social justice.
The decision has received widespread praise from parliamentarians, who described this step as a victory for retirees and emphasized the importance of continuing to respond to their demands to improve their living conditions.