Tax injustice and the integration of the informal sector in Morocco: Issues and challenges for a fair economy

Resumen

The informal sector plays a major role in the Moroccan economy, representing both a vector of social resilience and an obstacle to economic competitiveness. At the same time, the tax system suffers from structural inequalities, accentuating the sense of injustice among taxpayers and reducing the state’s ability to finance public services. This paper first analyzes the causes and manifestations of tax injustice in Morocco, as well as the consequences of the informal sector on competitiveness and social cohesion. It highlights the economic contribution of the informal sector in terms of employment, production, and value added, while emphasizing its negative impacts on the tax base. In response to these challenges, the study proposes concrete measures to promote a more equitable economy: incentives tailored to formalization, tax reforms aimed at broadening the tax base and strengthening progressivity, and enhanced governance and transparency. These recommendations aim to restore trust between the state and citizens, improve the efficiency of the tax system, and encourage the gradual integration of the informal sector, thereby contributing to more inclusive and sustainable economic development.