Experts: Morocco’s voluntary tax settlement to help integrates informal economy

Economists hailed the initiative as a major step toward tax fairness and economic reform. By enabling citizens to regularize their tax status, the initiative fostered reconciliation with tax authorities and reduced barriers for future compliance, experts said.

“The amounts collected through this initiative represent over one-third of the informal economy and provide a foundation for integrating the remaining sectors,” said Youssef Karaoui El Filali, president of the Moroccan Center for Governance and Management.

Karaoui El Filali highlighted the need for subsequent measures to absorb the rest of the informal economy into the formal system. He stressed the importance of channeling the newly generated revenue into productive investments to create jobs and stimulate economic growth.

“The critical aspect is ensuring these funds, currently estimated at 170 billion dirhams, are invested in projects that address Morocco’s high unemployment rates,” he said.

Economist Mohamed Jedri described the initiative as a turning point for Morocco’s tax policy. “This settlement gave many individuals the opportunity to settle their tax obligations, reducing fear and mistrust in dealing with tax authorities,” Jedri said.

He added that the program addressed disparities in the tax system, particularly between salaried workers, whose taxes are withheld at the source, and self-employed individuals, who often underreport income.

In addition to boosting tax compliance, the initiative injected significant liquidity into Moroccan banks, which had been struggling with cash shortages. Experts anticipate this liquidity will help support financing for the national economy.

Despite its success, experts emphasized the need for targeted strategies to ensure the funds are used effectively. They also called for further measures to fully integrate the remaining informal economy, estimated at two-thirds of its total size, into the formal sector.

The government has not yet announced plans for a follow-up initiative.