Morocco to Introduce New Tax for Small Traders to Combat Informal Economy

The government will be setting up a professional contribution for low-income activities and fighting the growth of the informal sector, reports L’économiste.

"The contribution of the informal sector [...] stands at 11.5% of national GDP," indicates the High Commission for Planning (HCP) on its website. To this end, the government intends to proceed in stages. Many consultations will be held, in particular, on the rules of liquidation.

The implementation of this tax is justified by the fact that small traders struggle to be located on the multitude of existing taxes (local taxes and other state taxes).

In principle, the 2020 Finance Act should initiate the process of simplification and coherence of the tax system, including at the local level, in accordance with the recommendations of the 3rd National Tax Conference, specifies the same source.

Consequently, the Framework Law will be the benchmark for the next 5 years, including for local taxation.

The General Directorate of Local Authorities has already carried out a review of the Local Taxation Law. The report will be approved in the very next few days.