Istiqlal economists call for tax breaks, green jobs in 2026 budget propsal

Istiqlal economists call for tax breaks, green jobs in 2026 budget propsal
Tuesday 2 September 2025 - 23:54

An Istiqlal Party think tank has unveiled sweeping proposals for Morocco’s 2026 finance bill, urging measures from tax breaks for schooling to nationwide green jobs programs, but the initiative has already triggered unease among its partners in the ruling coalition.

The “Rassemblement des Économistes Istiqlaliens” called for a socially responsible budget to reinforce the welfare state, ease household costs and expand public investment. 

Among its priorities are direct tax relief for families’ education expenses, incentives to spur private investment through a fully operational Investment Charter, and support for middle-class savings schemes.

The group also urged government action to tackle soaring food prices, notably by cracking down on speculative intermediaries in the meat sector and providing support to rebuild cattle herds. 

On rural development, it proposed boarding facilities for students, modern school transport, and family support tied to school attendance, as part of efforts to narrow inequalities in access to education.

Employment was another centerpiece: the economists recommended a nationwide tree-planting program and creation of a green belt around major cities, along with a campaign to collect and recycle plastic waste.

 They also pushed for new fiscal incentives, suggesting a 50 percent cut in social security contributions for the first three years of new hires, to encourage formal job creation.

But the ambitious plan has stirred criticism inside the governing bloc. Sources in the Authenticity and Modernity Party (PAM) described the move as premature and outside the proper budget calendar, noting that the finance bill must first be guided by the royal cabinet and undergo formal parliamentary scrutiny. 

A senior figure in the National Rally of Independents (RNI) called the memo “commendable in substance” but dismissed the timing as a “political maneuver” that risks undermining coalition discipline.

The proposals, framed as a contribution to national debate, come as political attention remains focused on electoral reform. 

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