Baitas addresses growing business bankruptcies in Morocco, Criminal Procedure Law

The Moroccan government refuted circulating claims about a surge in insolvent businesses in the Kingdom, pointing out that, in contrast, the number of active enterprises actually increased from 448,000 to 603,000 between 2021 and 2024.

During the weekly press briefing, the government spokesperson Mustapha Baitas emphasized the need to distinguish between active and inactive businesses.

“Active businesses are those that file tax returns, contribute to economic production, and maintain ongoing operations. Inactive businesses, on the other hand, are dormant entities that have ceased operations or no longer produce, and were created for some reason,” he explained.

Baitas elaborated further stating that previously, inactive businesses faced challenges in deregistering from the tax registry. The current Finance Law has provided them with this possibility under specific tax conditions, allowing a focus on active enterprises. Consequently, many inactive businesses have exited the register.

The government spokesperson stressed that “the exit of inactive businesses should not be interpreted as bankruptcy.” He emphasized that the tax provisions in the Finance Law have allowed non-operational and non-productive companies, which do not file tax returns, to exit the tax system.

On the other hand, Baitas highlighted the encouraging trend of increasing active businesses in Morocco.

Data indicates, as he cited, that from 2021 to 2024, the number of registered businesses has grown from 448,000 to 603,000.

Also, the number of self-employed individuals has increased by 200 thousand. Baitas hence commented that “these figures demonstrate a positive trajectory in the growth of entrepreneurial activity in the country.”

As to the draft Criminal Procedure Law, the government spokesperson explained that the decision to delay the approval was made to allow for more in-depth discussions on the comprehensive draft law.

“The Criminal Procedure Law is a very comprehensive document, encompassing around 500 articles,” he said, further elaborating, “The draft was presented today, and it is perfectly normal for the government to take extra time to thoroughly discuss its various provisions.”

Baitas acknowledged the collaborative efforts of various government sectors in developing the draft law but highlighted the need for further scrutiny and refinement.

He reassured the public that “the government will approve the draft law within the next few weeks and submit it to Parliament.”