A recent decision by the Moroccan government to cut income tax imposed on textiles and ready-to-wear clothing companies has been received with much criticism by the local labor unions. According to a report in Al-Hayat daily, the unions claimed that the government should give support to the employees of these companies, who usually receive a minimum monthly wage of MD 1,826, and not to the companies themselves.
The government, in turn, justified the decision, claiming that the Moroccan textile sector has been suffering from fierce competition, especially in the European markets, and, thus, deserves such incentives.
The textile industry in Morocco is the most important industry in the Kingdom in terms of exports as well as investments. It is considered the leading provider of job opportunities in the local industry, employing 208,338 workers in 1737 industrial units. Clothing products are almost entirely geared towards export (60 percent of production), making this industry a major source of forex revenues in Morocco.
Presently, there are 1,200 ready-to-wear-clothes companies operating throughout Morocco, some of which manufacturing for well-known international brands. In 1999, Morocco exported $1.6 billion worth of clothes and textile products. –(Albawaba-MEBG)