Morocco’s High Tax Burden Raises Questions About Public Benefits

"According to the definition of tax revenue retained by the IMF, the tax burden is close to 30% in Morocco," said Younes Idrissi Kaitouni. However, the tax burden in Morocco, calculated as the ratio of tax revenue to GDP, is estimated at just over 20%. The IMF, for its part, is based on criteria including a broader scope of compulsory levies. Compared to other similar economies, this tax burden rate of 30% appears excessive, while "citizens and businesses do not always perceive the concrete effects of tax levies in the improvement of public services and infrastructure," notes Médias24. "As an entrepreneur, I think the effort made in terms of income tax and social benefits does not yet meet expectations," stressed Hakim Marrakchi, president of the Tax and Customs Commission at the CGEM. "We are expecting improvements."

Kaitouni notes that the revenue from tax audits is not intended for the general state budget. "All audit revenue is exclusively allocated to VAT refunds. No dirham from tax audits will be paid into the state budget," he said. A mechanism that contributes to improving the liquidity of companies. Similarly, it prevents the state from becoming an obstacle to economic activity by accumulating rent arrears.

The state collects enough taxes, but the distribution suffers from equity. "Compared to the overall tax burden, I think its level should be understood, but it is the distribution that remains an important issue," said Mohamed Hdid, chartered accountant. The gap between the companies and sectors that pay taxes and those that partially or totally escape it is at stake. "The informal sector is not always where we think it is. The most harmful to the economy is not the visible one, but rather the fraud with false invoices within the formal companies," Kaitouni stressed. A huge loss of revenue for the state.