Morocco helps transport operators with fuel… then the tax authorities come after them

– byMomo · 2 min read
Morocco helps transport operators with fuel… then the tax authorities come after them

Transport operators in Souss-Massa are denouncing a paradoxical situation: while the state is helping them absorb part of the cost of fuel, tax audits would now be imposing adjustments on them that, according to their union, could push some companies into bankruptcy.

The regional branch of the National Union of International and National Transport, affiliated with the Moroccan Workers’ Union (UMT), has sent four urgent letters to the wali of Souss-Massa, regional and national tax officials, and the Minister of Transport. It is warning of the risk of the sector’s companies collapsing and, behind them, of thousands of families who depend on their activity.

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Transport operators describe a sector already caught in a vise. Their operating costs have reportedly risen sharply, while transport prices have remained under pressure for several years due to excessive competition. In addition, demand in the region for transporting agricultural products intended for export has declined.

“Helped” and then caught up by the tax authorities

It is in this context that the union points to what it considers a contradiction: companies receive public support intended to cushion only part of the rise in fuel prices, but are simultaneously subjected to tax audits and reassessments accompanied, according to the union, by particularly heavy penalties.

Some small businesses would thus find themselves facing sums far exceeding their financial capacity. The union goes so far as to speak of “economic execution,” believing that these adjustments are draining the cash reserves of already weakened companies and could lead to their disappearance.

It is now calling for the immediate suspension of ongoing tax reassessments and audits, the opening of dialogue with industry professionals, and an adaptation of the criteria for calculating tax to the specific characteristics of road transport. It is also demanding the cancellation of penalties and surcharges resulting from the disputed audits.

The warning ultimately extends beyond the fate of transport operators alone. Souss-Massa is a major agricultural region focused on exports and depends on road transport to move its goods. According to the union, the closure of several companies could therefore eventually disrupt this logistics chain and weigh on the region’s agricultural exports.

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For industry professionals, the problem is now straightforward: the aid granted to keep trucks operating risks losing its effect if, at the same time, tax adjustments absorb the cash reserves of the companies it was intended to support.