A growing number of upscale restaurants in Rabat's affluent Agdal and Hay Riad neighborhoods have been caught using a recurring tactic: telling customers that their card payment terminals are out of order, forcing them to pay in cash. The practice, widely reported by Moroccan consumer media including Goud.ma, has become so common that regulars in these districts now anticipate the excuse before even asking for the bill.
Consumer advocates and financial transparency watchdogs in Morocco argue the scheme is a deliberate strategy to underreport revenue and avoid value-added tax (VAT) and corporate income tax obligations. By keeping transactions off the books, establishments can pocket the difference between declared and actual income — a form of tax evasion that undermines Morocco's broader efforts to formalize its economy.
Morocco's tax authority, the Direction Générale des Impôts (DGI), has in recent years intensified campaigns targeting the restaurant and hospitality sector, which remains one of the most cash-intensive industries in the country. Regulations require businesses above a certain revenue threshold to accept electronic payments, yet enforcement in practice remains inconsistent, particularly for establishments that maintain an upscale image while operating informally behind the scenes.
Customers who push back are often met with indifference or told an ATM is nearby. Legal experts note that consumers have the right to dispute such refusals and can file complaints with local tax authorities or consumer protection bodies. The pattern also raises reputational questions for a city positioning itself as a modern business and diplomatic capital, where electronic payment infrastructure is widely available.
