Fight against Rising Prices: Government Decides to Exempt Equipment and Agricultural Inputs from VAT

The Head of Government, Aziz Akhannouch, announced, Thursday in Rabat, that the executive, as part of its efforts to fight the sources of inflation and rising prices, has decided to exempt equipment and agricultural inputs from value added tax (VAT).

Speaking at the opening of the Council of Government’s proceedings, Akhannouch said that this meeting will consider an important draft decree, through which the executive aims to protect the national market, ensure its supply of commodities, and cope with fluctuations in prices of agricultural products resulting from the rainfall deficit and supply difficulties worldwide.

The exemption from VAT will concern products related to the preservation of plant health, equipment used for the reproduction of plants and animals imported and intended exclusively for agricultural use, in addition to other equipment specially reserved for agricultural use, said the Head of Government.

After the meetings held last week with representatives of the Moroccan Confederation of Agriculture and Rural Development, and the Moroccan Interprofessional Federation of Production and Export of Fruit and Vegetables, and presidents of Chambers of Agriculture, in the presence of the Minister of Economy and Finance, the Minister of Agriculture and the Minister Delegate in charge of the budget, it was observed that the increase in prices of agricultural products is mainly due to the succession of years of drought in Morocco and the soaring prices of imported agricultural inputs, including live animals, and plant protection products, said Akhannouch.

The Head of Government highlighted the involvement shown by professionals at these meetings, with the aim of ensuring the continued supply of agricultural products to the domestic market and the balance of production chains to guarantee an abundance of products and mitigate the effects of rising prices on citizens.