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The Moroccan government yesterday announced an exemption from corporate tax for the defence, security equipment and arms manufacturing sectors, aiming to foster the development of the local defence industry, Anadolu reported citing a statement issued by the government.
The government council discussed and approved a draft decree that outlines a list of industrial activities eligible for temporary corporate tax exemptions, in line with the provisions of the General Tax Code.
The draft decree, presented by the Minister Delegate in Charge of National Defence Administration, Abdellatif Loudyi, seeks to grant a temporary tax exemption to the production of defence equipment, arms and ammunition by including these activities in the list of industrial sectors eligible for this tax benefit.
Morocco aims to establish a military industry as part of its ambition to become a regional power. The industry will address local demand while targeting export markets.