The Effect of Taxation on Dairy Processing Cooperatives in Morocco: A Qualitative Research

Being at the heart of the social and solidarity economy, cooperatives contribute greatly to the socio-economic development of countries. Moreover, this entity is not opposed to the realization of a lucrative activity, as the profits made are mainly devoted to their social finality. In addition, in order to fully ensure its socioeconomic function, the cooperative requires an institutional, legal and fiscal framework that guides and supports its activity, and also ensures its protection against commercial companies. However, following the growth of their activity, certain governments introduced a set of reframing the tax legislation, under the argument to establish tax fairness and to restore fair competition between cooperatives and lucrative businesses. Therefore, this submission to taxation has aroused reticence on the part of the cooperatives proclaiming that the public authorities have not taken into account their social contribution. Hence, these tax measures raise the question of their legitimacy and their effect on the growth of the cooperative’s activity, especially at the commercial, financial, and social levels. Thereby, to provide an answer to this problem, qualitative research was conducted to approach the effect of taxation on the growth of dairy processing cooperatives in Morocco.