Lekjaa also confirmed plans to raise the annual tax-free net income threshold from 40,000 to 60,000 dirhams and simplify the income tax system by reducing the number of tax brackets from five to three. The new rates will be set at 10%, 20% and 30%, bringing the top marginal rate down from 37% to 30%.
As Le360 previously reported, Lekjaa said the changes would leave 87% of taxpayers exempt from income tax.
Most employees benefiting from the reform are expected to take home around 500 dirhams more each month in 2027. The measures are projected to cost the Treasury 5.5 billion dirhams.
