Morocco Reduces Tax Expenditures by 6.2 Billion Dirhams Thanks to a New Evaluation System
Morocco has reduced its tax expenditures by approximately 6.2 billion dirhams, following the adoption of a new evaluation system since 2018, according to a report released by the German Institute for Development and Sustainability (IDOS) on Thursday. This measure is part of the state’s efforts to enhance the effectiveness of financial policies and streamline tax exemptions.
The report indicated that applying this reference system to data from 2017 resulted in a reduction in the number of measures counted as tax expenditures from 418 to 291, representing a decrease of 30%. Additionally, the total cost of these expenditures decreased from 34.7 billion dirhams to 28.5 billion dirhams, which corresponds to an 18% reduction.
It clarified that most of this decline stemmed from cuts in expenditures associated with registration and stamp duties, which saw a drop of about 3.18 billion dirhams, along with a reduction in value-added tax expenditures by 2.62 billion dirhams.
Regarding tax exemptions directed at families, the new system led to a reduction in the number of measures from 106 to 92, a decline of 13%. Despite this, the total cost of these benefits rose from 11.3 billion dirhams to 13.2 billion dirhams, reflecting an expansion in support for beneficiary families.
The report noted a significant improvement in the percentage of measures estimated to have financial costs within the total announced measures, rising from 39.5% in 2006 to around 86% in 2023, indicating progress in transparency and linking benefits to precise financial estimates.
In conclusion, the new standard system has enabled improved assessment and reduction of tax expenditures, calling for the necessity of conducting in-depth impact studies to ensure the achievement of financial and social objectives and enhance tax justice.
