Tax Stability in Morocco

Abstract

This paper aims to lead a reflection on Moroccan tax system stability, which is an important factor that promotes sustainability of public finance. Therefore, an assessment of the relationship between tax revenues and national GDP was conducted first, in order to get a global overview of the stability of the Moroccan tax system. Afterwards, we examine the empirical measure of each of the concepts, stability, growth rate and stabilizing influence for tax revenues in Morocco. The study focused on value added tax (TVA), IS (corporate tax), IR (income tax), and internal tax on consumption (TIC) over the period 1990-2017. The results demonstrate a good performance of tax revenues in terms of stability over the period 1990-2017, and shows that the Moroccan tax system includes taxes that generate stable current income (TIC and TVA), as well as elastic taxes correlated with economic growth (IS and IR).