BEIRUT — The Moroccan government has approved a proposed 2025 budget that exempts defense firms from taxes, in what’s seen as an attempt to boost military production and encourage foreign and national defense producers to invest in the kingdom. The budget proposal is reportedly expected to increase the defense budget slightly from $124 billion MAD ($12.4 billion USD) in 2024 to $133 billion MAD ($13.32 billion USD) in 2025. Harfi said that the income tax exemption is not the first for defense firms, as the Moroccan government approved a few months ago a complete exemption from value-added tax for a specific number of years. Morocco seeks greater knowledge transfer and advanced weapons testing and production.”Like most Arab states, Morocco is still in the development phase of its defense industrial base. Elsewhere, Morocco has joined forces with US-based Lockheed Martin and Belgian firms Sabca and Sabena to maintain and support F-16 and C-130 Hercules aircraft locally.

Source: The North Africa Journal November 19, 2024 20:52 UTC