Morocco To Cut Taxes on Medicines, Other Healthcare-Related Products By 2023

Morocco To Cut Taxes on Medicines, Other Healthcare-Related Products By 2023

Morocco has decided to review its tax administration, especially in the healthcare sector

Morocco to cut taxes on medicines as an effort to ensure equitable access to health services and improve the country’s healthcare services. This means a reduction in VAT on medicines, and taxes on imported medical devices, medical and paramedical devices, and materials in 2023.

The Ministry of Health and Social Protection had previously announced that it was taking imminent steps to develop and secure the national strategic stock of medicines and health products exposed to actual or potential shortages or disruptions by 2023.

In the statement, it was mentioned that a steering committee bringing together all the parties involved has been set up, and the ball has started rolling.

Morocco To Cut Taxes on Medicines: More Rationale

The government aims to ensure sufficient and steady supply and to take all necessary measures to prevent any supply rush.

According to the Minister of Health and Social Protection, Khalid Ait Taleb, this reform of the system for the next five years will be supported by four essential pillars such as good governance, the foundation of new generation hospital structures, the training of new skills and the digitalization of the healthcare system.

He also mentioned that there are plans to arrange remote and real-time care by linking patients and health centers.

According to him, this will help battle the issue of mental illness that has become rampant due to the increased consumption of psychotropic drugs, from 860 million dirhams in 2019 to 960 million dirhams in 2020 caused by the pandemic.

He continued that the use of psychotropic drugs increased to 980 million dirhams in 2021.

In a recent press release, the Moroccan Ministry of Health specified that this decision to reduce VAT, which will be notified as part of the 2023 finance law plan, is by the will of King Mohammed VI, who places health and its access to Moroccans at the heart of national concerns.

Health Care in Focus

Beyond the headline, Morocco to cut taxes on medicines, the Moroccan government has included certain healthcare-related projects in the 2023 draft budget bill.

While introducing the 2023 draft budget bill in parliament, Morocco’s Economy and Finance Minister Nadia Fettah Alaoui revealed that the government plans to increase its annual healthcare and social security expense by MAD 4.6 billion, making the budgeted figure a sum of MAD 28 billion.

According to the minister, one of the proposed projects is to create 5500 new jobs within the sector, throughout 2023, and allocate MAD 5.1 billion to salary increments for workers within the healthcare sector.

The government also promised to establish three university hospitals in Errachidia, Guelmim, and Beni Mellal.

The minister mentioned that the government intends to establish many healthcare facilities across the country to ensure equal access to healthcare services.

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