Oxfam Report: Morocco’s Tax System Fails to Address Growing Wealth Gap

The Moroccan tax system has been combed through. In its latest report "Fair Tax Monitor: Analysis of the Moroccan Tax System", Oxfam notes that Morocco has recorded sustained growth in its tax revenues over the past two decades. The only paradox: the analysis of the elasticity of the Moroccan tax system during the same period shows that the latter is unable to keep pace with the evolution of the wealth created.

All of which leads Oxfam to hammer home that the economic recovery must be based on a broader base and progressive taxation. "The economic and social recovery of the kingdom must not be at the expense of reducing public revenues, as this impacts the entire country. There are political choices to be made, particularly in this context of the Covid-19 crisis, it is time to prioritize the generation of real value, cooperation and the future of the entire population," says Asmae Bouslamti, Governance Program Manager at Oxfam in Morocco.

"Broadening the tax base to make the contribution of all economic actors more equitable is one of the major challenges for Morocco in the current context. Taxation on wealth is one of these means that has been recommended since the 2013 Tax Meetings and confirmed in 2019. It is no longer a question of postponing again a measure that would give hope to the underprivileged populations and a turning point that would allow the Moroccan tax system to mobilize revenues and be more fair and progressive," he added.

In order to avoid a return to austerity and a rise in social tension and inequalities, Oxfam makes a few recommendations. These include actively working to improve the progressivity of taxes; urgently establish an exceptional or permanent tax on large fortunes and environmental taxes; make the tax system the lever for effective public spending oriented towards social sectors; make VAT a tool to fight against class and gender inequalities; study the relevance of tax expenditures by reducing tax incentives that have not had the expected economic effects or those contributing to the widening of social inequalities; improve the governance of the Moroccan tax system and the fight against corruption, and finally, improve the participation of citizens and civil society in the development of budgets.