Morocco to endorse natural disaster tax

The Moroccan government will soon approve the ‘Solidarity Tax against Disastrous Events’ draft decree, which will be part of the Solidarity Fund against Disaster Events.

The decree outlines the introduction of a new tax of one percent on premiums and contributions paid under insurance contracts, with the exception of life insurance contracts.

It also specifies the list of natural disasters covered by the fund for the consequences of disastrous events adopted in 2016. The fund is designed to cover disasters such as floods, earthquakes, and tsunamis, according to a report in Morocco World News.

It includes two insurance systems: the first offers insurance for the victims with an insurance contract; the second is allocated for the victims with no insurance contract.

According to the new regulation, the maximum compensation per event cannot be lesser than MAD2 billion in the case of a disastrous event due to natural causes, and MAD300 million when it is due to man made events.