Tax amnesty: Over $10 bln injected in Morocco’s banking system

Moroccan banks were busy treating requests by cash holders and owners of undeclared assets in exchange for a preferential tax of 5% only, in an operation that ended on December 31 with the injection of 100 billion dirhams or 10 billion dollars in the Moroccan banking system.

At least 5 billion dirhams went to the treasury through the preferential 5% tax deductions, according to preliminary estimates by le360.

The tax amnesty aimed at reducing the circulation of cash and the scale of the informal economy as well as encouraging individuals and companies to be transparent in terms of income declaration and tax payment.

President of the central bank had warned that the use of cash has grown exponentially to 400 billion dirhams, nearly a quarter of Morocco’s GDP.

The new funds will boost Morocco’s 2025 budget and help contain the deficit within the targeted 3.5% from 4% in 2024.