The removal of inactive companies from the tax system is not an indication of bankruptcy, but rather an option introduced through recent fiscal reforms, stated Mustapha Baitas, the Minister Delegate in charge of Relations with Parliament and Government Spokesperson, on Wednesday in Rabat.

Baitas explained that both Parliament and the government collaborated on amendments to the finance law, which now requires inactive companies to decide their future—either remaining in or exiting the tax system under specific conditions. This response was given during a press briefing following the Council meeting.

These conditions include regularizing the tax status of inactive companies through a special procedure that temporarily suspends automatic taxation and ensures the companies’ rights. This regime targets businesses that have failed to meet their tax obligations for the past three fiscal years and have not conducted any operations or activities during this period.

Furthermore, Baitas noted that the regime also addresses companies that have not generated any revenue or have only paid the minimum contribution. These measures enable inactive companies to leave the tax system, allowing the government to focus on and support active businesses.

Emphasizing the government’s commitment, Baitas highlighted that comprehensive tax system reform remains a priority, alongside reforms of corporate tax, value-added tax, and income tax. These reforms have significantly boosted tax revenues.