Moroccan Sahara, this tax haven ...

After the return in 1975 of the Saharan provinces in Morocco, the government established a number of measures to promote the growth and economic development in these provinces. Thus, massive investments in infrastructure have been made (roads, desalination plants of sea water, connection to the national grid, ports, airports ...), and significant tax measures have been taken to promote entrepreneurship and encourage the staff of the Moroccan state to move away from their home towns.

Thus, the Saharan provinces are simply exempt from all taxes:

Tax on society (IS): 0% (30% elsewhere)
Added Tax (VAT): 0% (20% elsewhere)
Income tax (IR): 0% (tax increments elsewhere)
Domestic consumption tax (TIC): 0% (tax that affects mostly petroleum products, soft and alcoholic drinks)
Even the US state of Delaware, yet renowned as one of the largest tax havens in the world, is no better!

No wonder more and more Moroccan companies are domiciled in Laayoune, while the bulk of their business is based in Casablanca and Tangier ...

One of the problems that caused the latest events of Laayoune, is precisely the dependence of the inhabitants of the aid of the Moroccan state. For obvious political reasons, the State has developed a culture of handouts, distributing "cartiya" of the National Mutual entitling to 1350 DH / month, with free transportation and free distribution of food. But these cards were distributed according to far from fair criteria, and do not necessarily go to the most needy ... And this inevitably creates situations like those experienced by the Gdeim Izik camp in recent weeks.

And for those who accuse the Moroccan government to "loot" the resources of the Saharan provinces phosphates, Mr. Terrab, CEO of OCP has made a very clear answer on the issue in a statement to Reuters:

OCP HAS faced criticism from foreign Some civil society groups over it operations in Western Sahara, an area about the size of Britain That Was APPENDIXD by Morocco in 1975 and is the subject of Africa's longest-running territorial conflict.

OCP has faced criticism from some foreign civil society groups over it operations in Western Sahara, an area about the size of Britain that was annexed by Morocco in 1975 and is the subject of Africa’s longest-running territorial conflict.

Critics say the firm should not be exploiting Western Sahara’s mineral resources until the sovereignty issue is settled. Terrab rejected that, saying his firm was not in Western Sahara to pursue profits.

Company officials say the territory has less than 2 percent of Morocco’s phosphate reserves, and that between 1976 and 2008 the firm made net losses there of 4.716 billion Moroccan dirhams, or about $580 million at the current exchange rate.

“If we stopped that operation, we could probably stop our losses at the same time but you would have 1700 families that would lose their livelihood,” Terrab said. “So we see it as the opposite, we see it as our moral duty to be there.”

Basically, OCP loses a lot of money by exploiting the mines Boukraa, and is doing so primarily to create jobs and economic and industrial fabric in the region.

OCP: Office cherifienne des phosphates