Morocco Tightens Vehicle Tax Enforcement: New Law Targets Used Car Sales

As of January 1, 2021, the sale of vehicles can only be carried out if the annual special tax on motor vehicles (TSAVA), called the sticker, has been fully paid. This is what the 2021 Finance Act provides for, which through this mechanism, intends to fight tax evasion and above all to mitigate the conflicts related to the payment of this tax. The presentation of the 2021 finance bill will be made this Monday, October 18 before the two Houses of Parliament.

To avoid falling into the pitfalls of this measure, the buyer of a used car just needs to check if the TSAVA has been paid. According to Otman Mouden, the President of the Forum of Researchers of the Ministry of Economy and Finance, this decision will ensure a fair tax regime. He points out that apart from the non-payment of this tax, the sale of the vehicle will also be blocked for any other unpaid debts found during the operation, reports Maroc Diplomatique.

The tax authorities had introduced several restrictive measures for motorists who nevertheless manage to circumvent them and circulate without paying their taxes. According to Otman Mouden, several laws govern the opposition operations in the vehicle registration centers, such as Law No. 15-97 on the recovery of public debts, specifies the same source.