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Casablanca – The International Monetary Fund (IMF) anticipates that Morocco will be able to generate more untapped tax income, increasing by 12% of its Gross Domestic Product (GDP).
The banking institution guarantees that this income’s influence in the Moroccan economy, especially in GDP, remains relatively low. Nonetheless, economic growth and social inclusion are projected to increase by the end of this year.
According to the IMF, the disparity between actual and potential tax collection in Morocco amounts to 12% of the national GDP.
Specifically, tax revenues account for 21.6% of GDP, whereas the IMF estimates that the potential can reach 33.8%.
Read also: IMF Positive about Morocco’ Economic Post-COVID-19 Rebound
As a result, the international organization anticipates that the Moroccan government will be able to collect significantly more income if tax rates are a reflection of the country’s economic structures.
According to the IMF, Morocco has achieved considerable economic gains, as the North African country’s revenue base has grown significantly over the past year.
In such a context, the international banking entity predicts that tax system modifications, such as the adjustment of the personal income tax, the value-added tax, and property taxes, will stimulate further collection.
Similarly, the IMF forecasts that changes to enhance economic diversification might aid in mobilizing income and therefore obtaining more advantages.
Modernizing and boosting the efficiency of tax administrations in Morocco via efforts to combat corruption, strengthen governance, and promote transparency would also result in better enforcement.
The IMF predicted similar figures in several Middle Eastern and North African nations which have been able to broaden their tax bases by raising extra tax income.
According to the international organization, the disparity between actual and potential tax collection in these countries amounts to around 14% of GDP.
