Moroccan government officials and international economists agree that the tax system is in urgent need of an overhaul.
“Today we need to move on from the idea that tax is a burden or a punishment, and see it as a fundamental principle of good citizenship,” Economy and Finance Minister Nizar Baraka told Magharebia outside the April 29th-30th Tax Conference in Skhirat.
In his opening speech, Prime Minister Abdelilah Benkirane explained that tax reforms “cannot be seen as a technical process taking place in the background, but must be the choice of society as a whole, aimed at establishing conditions favourable to economic development and social cohesion”.
In a video address to the participants, International Monetary Fund (IMF) Director Christine Lagarde took the opportunity to recommend far-reaching reforms to the benefits system, which, she said, was “placing a serious burden on state finances”.
Minister-Delegate for the Budget Idriss Azami struck a similar chord: “The state also has a role to play in the matter, setting an example through spending to meet the needs of the public.”
Tax receipts in Morocco have been seriously eroded by the multitude of tax breaks available and the growing impact of tax evasion and the informal economy.
The “inequitable” nature of taxation on the informal economy “nourishes the scourge of unfair competition and punishes those companies which opt for transparency”, noted General Confederation of Moroccan Businesses (CGME) Chair Miriem Bensalah-Chaqroun.
She urged everyone to “pay their dues to society”.
Participants were unanimous in stressing the importance and urgency of reviewing tax arrangements to introduce greater fiscal equity and transparency.
They called for taxing the profits of major agricultural operators. They also called for school supplies to be exempted from VAT, and for study-related levies to be lifted.
They also demanded legislation that would introduce a 0.5% to 2.5% minimum tax on assets.
Organisers hoped the conference would lead to a new tax system that would be profitable for the state, all the while allowing companies to be competitive by relieving some of the pressure on their finances.
