Unions Demand Income Tax Cut Benefits Only Employees
13 January 2009
Read by 1623 persons
Only employees should benefit from the income tax (IR) cut, trade unions believe, urging employers not to misinterpret the government’s decision.
The various trade unions categorically reject employers’ calls to extend the income tax (IR) cut to businesses. This was affirmed by leaders of the main unions involved in social dialogue. According to the Secretary General of the Democratic Federation of Labor (FDT), Abderrahmane Azzouzi, the debate is closed on this point. "Regarding the IR, the situation is clear and there is no need to discuss it. Only the employee should benefit, not the businesses," the USFP union leader told ALM yesterday. "Employees expect, according to the FDT SG, a salary increase and an IR decrease, not the opposite." The same sentiment is echoed by Mohammed Yatim, Secretary General of UNTM. "Businesses benefit from tax exemptions while employees suffer," he noted, adding: "If businesses benefit from the expected IR cut, it will undoubtedly affect civil servants’ work, impacting their productivity. Ultimately, the business will be the loser."
For the UNTM SG, in the current international context, Moroccan businesses and employers must instead defend the interests of employees so that they feel secure and work in good conditions. "We are currently going through a very delicate international situation. Therefore, we must strengthen the purchasing power of the employee through an IR cut and salary increases, and not change the intended purpose of certain government decisions or misinterpret them without considering the interests of civil servants," lamented Mr. Yatim. Without reservation, the UNTM SG goes beyond the IR. He called for a review of the entire tax system. "We call for a comprehensive reform of the tax system. First, because we believe that civil servants pay much more tax, and given what is happening in other Mediterranean countries, particularly Tunisia, it is inconceivable that we continue with such a flawed tax system," said Mr. Yatim. Regarding the impact of the Finance Law on the price increases in our country, the UNTM SG was surprised that it was called a law dedicated to social sectors. "It is said that more than 50% of the Finance Law is dedicated to social sectors.
I find there is a great misunderstanding on this subject. If the characteristic of this Finance Law is truly "social," this implies that we must review, among other things, taxation on medicines, school supplies, medical care, etc. We believe that the government is applying double standards, and we call for tax justice," he raised. For his part, Miloudi Moukharik, National Secretary of the Moroccan Union of Labor (UMT), states that what some employers are demanding is "social smuggling." "Once again, some employers want to practice what is called "social smuggling." They want to profit from this government measure," he said. He further asserted that there is no need for jurisprudence to interpret the government’s decision on the IR cut. "For us, the situation is clear and unambiguous. And regarding the tax cut, there is no need for jurisprudence," he stressed, adding that any other interpretation of the government decision, which is the result of dialogue between the El Fassi government and the various social actors, is immoral.
Soufiane Belhaj
Posted online January 13, 2009
infosdumaroc.com
The various trade unions categorically reject employers’ calls to extend the income tax (IR) cut to businesses. This was affirmed by leaders of the main unions involved in social dialogue. According to the Secretary General of the Democratic Federation of Labor (FDT), Abderrahmane Azzouzi, the debate is closed on this point. "Regarding the IR, the situation is clear and there is no need to discuss it. Only the employee should benefit, not the businesses," the USFP union leader told ALM yesterday. "Employees expect, according to the FDT SG, a salary increase and an IR decrease, not the opposite." The same sentiment is echoed by Mohammed Yatim, Secretary General of UNTM. "Businesses benefit from tax exemptions while employees suffer," he noted, adding: "If businesses benefit from the expected IR cut, it will undoubtedly affect civil servants’ work, impacting their productivity. Ultimately, the business will be the loser."
For the UNTM SG, in the current international context, Moroccan businesses and employers must instead defend the interests of employees so that they feel secure and work in good conditions. "We are currently going through a very delicate international situation. Therefore, we must strengthen the purchasing power of the employee through an IR cut and salary increases, and not change the intended purpose of certain government decisions or misinterpret them without considering the interests of civil servants," lamented Mr. Yatim. Without reservation, the UNTM SG goes beyond the IR. He called for a review of the entire tax system. "We call for a comprehensive reform of the tax system. First, because we believe that civil servants pay much more tax, and given what is happening in other Mediterranean countries, particularly Tunisia, it is inconceivable that we continue with such a flawed tax system," said Mr. Yatim. Regarding the impact of the Finance Law on the price increases in our country, the UNTM SG was surprised that it was called a law dedicated to social sectors. "It is said that more than 50% of the Finance Law is dedicated to social sectors.
I find there is a great misunderstanding on this subject. If the characteristic of this Finance Law is truly "social," this implies that we must review, among other things, taxation on medicines, school supplies, medical care, etc. We believe that the government is applying double standards, and we call for tax justice," he raised. For his part, Miloudi Moukharik, National Secretary of the Moroccan Union of Labor (UMT), states that what some employers are demanding is "social smuggling." "Once again, some employers want to practice what is called "social smuggling." They want to profit from this government measure," he said. He further asserted that there is no need for jurisprudence to interpret the government’s decision on the IR cut. "For us, the situation is clear and unambiguous. And regarding the tax cut, there is no need for jurisprudence," he stressed, adding that any other interpretation of the government decision, which is the result of dialogue between the El Fassi government and the various social actors, is immoral.
Soufiane Belhaj
Posted online January 13, 2009
infosdumaroc.com
