Income tax: PAM proposes exempting salaries under 15,000 DH
PAM's election platform for the September 23, 2026 legislative vote proposes exempting monthly salaries below 15,000 dirhams from income tax, at a cost of more than 30 billion dirhams a year.
The Authenticity and Modernity Party (PAM), led by Fouzi Lekjaa, unveiled its election platform for the September 23, 2026 legislative elections on Tuesday, September 1, 2026, in Rabat. The platform includes a proposal for a sweeping reform of Morocco's income tax, which would exempt gross monthly salaries below 15,000 dirhams from the tax, while simplifying the current six tax brackets down to just three.
The proposed new tax brackets
PAM proposes the following new income tax structure:
| Gross monthly income | Proposed tax rate |
|---|---|
| 0 to 15,000 DH | 0% |
| 15,000 to 46,000 DH | 10% |
| Above 46,000 DH | 20% |
By comparison, the current tax system sets the exemption threshold at just 6,000 dirhams per month, while the top marginal rate reaches 37%, across a structure with six separate brackets.
The cost of the reform and how it would be financed
The party estimates this measure alone would cost the treasury more than 30 billion dirhams a year in income tax revenue. The total cost of PAM's full program, all measures combined, is put at 350 billion dirhams over five years, or roughly 70 billion dirhams annually.
To finance this cost, the party is counting on three main sources over five years: 300 billion dirhams from the expected effect of accelerated economic growth, 40 billion dirhams from a contribution by local authorities (collectivités territoriales), and 10 billion dirhams from spending rationalization and improved public spending efficiency. PAM's calculations are based on an assumed annual economic growth rate of 5% between 2027 and 2031.
Who would benefit from this exemption?
According to the report's figures, around 80% of salaried employees in Morocco are already exempt from income tax, since their salaries do not exceed the current 6,000-dirham monthly threshold. By contrast, only 5 to 6% of salaried employees earn a net monthly salary above 15,000 dirhams. The group that would benefit most from the new measure is therefore middle-income earners, making between 6,000 and 15,000 dirhams a month, who currently pay income tax under the middle brackets of the existing system and would become fully exempt if the proposal were adopted.
Why this matters now
The proposal comes in the middle of the election campaign, less than three weeks before voters go to the polls, amid the new laws governing the upcoming September 23 legislative elections. For comparison, the current government's 2025 tax reform only lowered the top marginal rate from 38% to 37%, at an estimated cost of about 7 billion dirhams a year at the time — making PAM's proposal more than four times larger in direct annual cost. It should be noted that this proposal remains, at this stage, only an election-platform commitment, and has not yet been presented as a bill or included in a finance law.