CMC dedicates special edition to taxation


The Moroccan Center of Conjunction (CMC) recently announced the publication of the 312nd edition of its monthly publication "Morocco Conjoncture" dedicated to "taxation".
This edition focuses on a number of themes, including "Taxation: International Comparison", "Tax Guidelines: From Reform to Reform", "Weight of Mandatory Fees in Families: A Difficult Socio-Fiscal Reality", "Fiscal Competitiveness : Increasing the tax on labor factor "and" Tax reform: the participation of the 3rd Fiscal Conference, "the CMC said in a statement.
The tax system is recognized as an important determinant of the business climate and contributes, along with other economic policies, to the evolution of growth and the fight against inequalities, says the publication, noting that according to the Pay Taxes report, that is interested in its edition of 2018 for the impact of digitization on tax systems, Morocco is a good student, since it is ranked 25th out of a total of 190 countries.
"However, according to the International Monetary Fund (IMF), the Moroccan tax system, as in many countries in the Middle East and North Africa (MENA), suffers from inefficiency and is unfair," says CMC, noting that the process of tax reform in Morocco is an important part of the more general reform of public finances, from the Organic Law of the Finance Law to local finances, which must undergo a new turnaround in the context of advanced regionalization, MAP reports.
"It is a long-term effort in the government's effort to improve macroeconomic balances," said the source, indicating that the expected actions in this area are instilled by the desire to modernize the administration of the finances. through the strengthening of regulatory mechanisms of revenue and expenditure.
The aim of the whole approach is to stimulate the fiscal system towards a new dynamic, in line with the economic, social and political transformations of the Kingdom, the same source adds.
In addition, the CMC notes that household taxation, a source of debate, returns to the front line at the time of each Finance Act, adding that many reforms have been made over time to alleviate their burden on different economic agents, especially families.
"Despite all the efforts made in this regard, Morocco is one of the African countries that knows the highest rate of compulsory deduction (taxes and social contributions) from the continent," he notes, reporting that the rate reached 29% in 2017, while the tax burden was 22.9% and tax collection weighed only 6.7%.
The evolution of these indicators between 2007 and 2017, as measured by national accounts data, was largely determined by the trend of the economic situation during that period, notes the same source, indicating that this level is, however, much weaker than in developed countries.
In addition, the publication indicates that the steady increase in the tax burden in the last ten years has created a heavy tax burden on taxpayers, businesses and households. With an apparent rate of 28.7%, Morocco is currently among the developing countries with a high tax burden, while fiscal restructuring that has been in force for more than three decades has led to a significant change in taxation. taxation of capital and labor.
Estimates show that the implicit tax rate for the labor factor has increased by almost 10 points in the space of 15 years, compared with 3.2 points for the capital factor, CMC noted. Support for the competitiveness of companies requires a recovery of this trend by transferring part of the tax burden linked to labor to final consumption.
The reform of the tax system is a very vast project that requires a sufficiently detailed analysis before arriving at definitive and practical conclusions, he emphasizes, emphasizing that the measures proposed in tax matters depart from the widely shared observation that The present level of taxation penalizes the families, businesses and investors.


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