Morocco’s government has postponed plans to introduce a wealth tax, saying the idea requires more detailed study to determine who would be affected, what assets would be taxed, and how the system would operate in practice.
In a document responding to lawmakers’ questions about the 2026 draft finance bill, the Ministry of Economy and Finance said creating a wealth tax requires “in-depth studies” to set clear criteria and evaluate its economic and social impact.
The ministry noted that wealth taxes remain a subject of debate worldwide. Supporters see them as a tool for social justice, while opponents warn they could prompt wealthy individuals to move money, or even themselves, abroad.
Proponents argue the measure could help reduce inequality and redistribute wealth. Critics counter that it might discourage investment, hurt job creation, and slow economic growth if high earners relocate or conceal assets.
The ministry outlined several technical challenges. A key issue is how to fairly define and assess taxable items, ranging from property and movable assets to art, jewelry, and other valuables. Another difficulty is setting equitable rates for assets that do not generate regular income, which could place an undue burden on taxpayers.
Authorities also highlighted the risk of tax evasion, noting that some individuals might transfer assets into companies or other legal structures, complicating enforcement.
Morocco’s current tax framework does not include a specific tax on wealth or property. Instead, it focuses on gradually applying taxes on total individual income, which can reach up to 37%. The government said this system aims to ensure fairness, increase high earners’ contributions, and reduce social inequality.
To strengthen oversight, the 2024 finance law allowed authorities to review individuals’ overall financial situations and compare declared income with actual spending and assets. The 2025 budget adds measures to expand the tax base to cover previously untaxed income, including gambling winnings and profits from irregular or one-off transactions, ensuring all citizens contribute appropriately.
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