Morocco’s Tax Evasion Crisis: 2% of Taxpayers Contribute 80% of VAT Revenue

According to L’Économiste, only 2% of taxpayers "provide 80% of the revenue" from VAT, while 76% of declarations are not followed by payments. The contribution is 1.3% for individuals and 13% for certain companies, the economic daily notes, noting that this low rate results in a shortfall of one billion dirhams for the Moroccan state.

To address this situation, the government is considering implementing two measures. The first concerns the establishment of the principle of solidarity in the collection and payment of VAT for any person holding administrative or management functions in a company. Its objective is to strengthen the fight against tax evasion and tax transparency.

The second measure aims at the withholding of VAT at source by taxpayers on the amount of tax due by suppliers who do not have a tax certificate. The two measures are currently the subject of debates in parliament due to their impact on the employers’ association. Will the government dare to go through with this reform?