They call it "LE NOIR" & we all know why,any purchase done in Morocco30% is done under the table in other words in cash & its not declared to the Tax office & its common now everywhere ,this is one third of all Tax income from land & property sales a huge summs,i hear you saying it will be wasted any way once it hits the Tax office ! but when a country is happy to help the continous drain on its income it makes you wonder why we are where we are .
It exists in Europe as well but not in those proportions and in Europe it does make sense because of the huge registration taxes (16 % in Belgium), in Morocco it's only 2.5 % and 1.5 % for the notary, you can even be exonerated in certain cases. So Moroccans can't claim "self-defense" because of high taxes. We are, for all intent and purposes, a tax heaven. Just look at our tax system, it's laughable compared to what we pay abroad. The basic idea of taxes financing roads, schools, universities, hospitals...etc isn't taught early on, I've had this discussion with my cousins countless times : Moroccans complain the State doesn't help enough but they refuse to pay taxes, so where would the money come from to build those things ? They don't get the concept. Again education, education, education.
hi atlasmagic, very interesting topic thank you, tax in Morocco is a shamble , because people , traders , businessmen still don t use receipts just in very rare cases, the tax man just guess the amount and most people find a way to manipulate and not pay , to be fair this problem is not just in Morocco but in all third world countries in the last 5 years some countries like tunisia and egypt took the initiative to organise this domain by introducing new laws like the ones in europe but as for most laws in corrupted countries things take time in theory they look good but in practice there are no tools to force anything which drains the economy and slow any progress Morocco too has started some timid steps but still along way , i heard from a freind that in 2010 farmers will pay tax , little shops need to start to give receipts so that the taxman will be able to estimate how muh they need to pay even if they apply all sort of laws i am sure the poor will pay but the big sharks will employ the best acountants to find a way to cheat the system . what i find appaling is over 50 years of independance all these governements along the years and they don t even have a practical tax system fair and just , they don t need to invent anything just copying the systems in some european countries and with that pensioner as prime minister i dont think anything will change either
people pay tax to get other things in return, people refuse to pay tax cause they don´t get any thing in returne.
is true we will never go further with this mentality, but i know people who tried to pay tax, but they never get for exemple there TVA back and that is 20% in Morocco.
there is nothing free any more in Morocco, how do you expect people to pay more and more. people pay for road, hospital, school...etc. how can we expect someone selling in the street that had hard time to pay his rent to pay tax.
where i am I pay 52 % tax plus 25% TVA and i never complain, cause I still have enough to live by, and i dont pay doctor, roads or school for my kids. If moroccan back home had the same chances I am sure they will pay tax.
to bad we have so many thieves running the system back home.
Edited 1 time(s). Last edit at 10/11/2007 08:23 by aziz_dk.
taxes come with structured market and cristal clear rules of doing business. moroccan economy in its majority is anything but an organized stuff, so nobody really sees what for the tax. Ask around you, it is perceived as a rubbery organized by the state. As long as this perception stands, taxe collection will continue to be a very tough sport.
How do we expect Moroccans to pay taxes when the government is aware of what's happening and doesn't do anything. The people running the governmemt do the same as well. The last time I sold property in Morocco, I went to pay taxes and I practically had to beg them to "please take my money". U should see the attitude of those guys, they wouldn't even talk to u and u'r there to give them a big fat check.
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