Too much social inequality in Morocco, alarms Oxfam

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 is that 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 things which lead Oxfam to insist that the economic recovery must be installed on the basis of a larger base and progressive taxation. “The economic and social revival of the kingdom should not be at the cost of reducing public revenues because this impacts the entire country. There are political choices to be made, especially in this context of the Covid-19 crisis, it’s time to prioritize the generation of real value, cooperation and the future of the entire population, ”notes Asmae Bouslamti , Governance program manager at Oxfam in Morocco.

“Widening the tax base to make the contribution of all economic actors fairer is one of the great challenges for Morocco in the current context. Taxation on wealth is one of these means that has been recommended since the 2013 Tax Conference and confirmed in 2019. There is no longer any question of rejecting again a measure that would give hope to poor populations and a turning point that would allow the Moroccan tax system to mobilize revenue 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 some recommendations. These include, among others, actively acting to improve tax progressivity; urgently establish an exceptional or permanent tax on large fortunes and environmental taxes; make the tax system the lever of efficient public expenditure oriented towards the social sectors; make VAT a tool in the fight against class and gender inequalities; study the relevance of tax expenditures by reducing tax incentives that have not produced 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 preparation of budgets.

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