15% of Moroccan Businesses Say Tax Rates Are A Major Obstacle

Rabat – Moroccan businesses identify tax rates, corruption, and tax administration as the biggest obstacles to doing business in Morocco.

According to a recent survey, 15% of businesses operating in Morocco said tax rates and corruption are the major obstacles to doing business. 14% said that the tax administration is on top of their concerns.

Across the Middle East and North Africa, access to financing, political instability, tax rates, and corruption are among the common concerns for businesses.

In Egypt and Jordan, 24% and 28% of firms respectively said they are primarily concerned about the national tax rates, according to a recent survey from the World Bank (WB), the European Investment Bank (EIB), and the European Bank for Reconstruction and Development (EBRD).

Titled “Unlocking Sustainable Private Sector Growth in the Middle East and North Africa: Evidence from the Enterprise Survey,” the report comprises data on the contemporary situation of the MENA region’s economy, including the ease of doing business and perceived obstacles.

Conducted between 2018 and 2020, the survey includes data from 5,800 businesses operating in the region.

On the overall performance of regional economies, the report notes that Gross Domestic Production (GDP) per capita grew at an average of 0.3% for the group of countries comprising Morocco, Egypt, Jordan, Lebanon, Tunisia, and the West Bank and Gaza, below the 1.7% average of the lower-middle-income countries.

Regarding Morocco, the report notes that the country “compares favorably to the benchmark” in terms of the GDP growth per capita, as it grew at a rate of 1.7% over the study period.

But the report also sheds light on an alarming issue in the region’s business landscape. According to the survey, MENA businesses “use connections and business associations to gain political access.”

MENA businesses use direct political connections, by including former government officials in management or businesses, at a higher rate than elsewhere.