Abdelouafi Laftit, the Minister of the Interior, presented the amendments of the draft law No. 14.25, which amends law No. 47.06 related to local tax systems, noting that “this will establish a tax reform that achieves tax justice among taxpayers and develops the self-generated tax resources of local authorities.”
During a public legislative session in the House of Representatives on Tuesday, Laftit explained that “coordination will continue between the Ministry of Interior and the Ministry of Economy and Finance regarding the taxes owed to local authorities, which are managed by state services, within the framework of the future implementation of the measures included in the draft.”
He clarified that “a circular will be directed to the governors and prefects who are in charge of spending to elucidate the taxes managed by local authorities.” The Minister of Interior pointed out that “the mentioned draft law proposes to delegate the collection and issuance of the housing tax and the general services tax to the same administration managing the professional tax, represented in the services of the General Tax Directorate.”
According to the government official, these provisions aim to benefit from the experience accumulated by this administration in managing state taxes and contribute to updating the regulations concerning local taxes to align them with the provisions governing state taxes in areas of assessment, collection, auditing, disputes, procedures, and electronic services.
Among the key aspects of the above-mentioned draft law, Laftit noted, is the alignment of the rates of the tax on undeveloped urban land with the level of infrastructure in the areas where they are located, given that these rates have remained unchanged since 2008.
The prices are expected to change from 15 to 30 dirhams per square meter for lands located in areas with all or most amenities, including water, electricity, and drainage networks, while changing from 5 to 15 dirhams for lands in moderately serviced areas.
Additionally, these prices will be raised from half a dirham to two dirhams per square meter for undeveloped lands in impoverished areas lacking most basic services, with these areas to be designated by a decision from the municipal president after approval from the local or provincial governor.
The Minister of Interior stated that the amendments concerning taxes managed by state services aim to enhance the effectiveness and efficiency of the tax administration, which is deemed an urgent necessity for the success of any tax reform. These amendments affect the administrations managing the professional tax and the housing tax, based on the principle that “whoever issues collects.”
Referring back to the matter of undeveloped urban land assessment rates, it is anticipated that collective tax collectors will be established within local authorities to carry out all collection procedures, especially concerning compulsory collection, with these collectors appointed by a decision from the relevant government authorities in the ministries of interior and finance.
Laftit added that regarding the taxes and issues concerning taxes owed to local authorities in courts, the Director General of Taxes will replace the General Treasury of the Kingdom in all matters related to the housing tax and the general services tax. The collective tax collector will replace the General Treasury of the Kingdom in the collection of other taxes, except for the professional tax, the housing tax, and the general services tax.
