Interior seeks recovery of over MAD 41 billion in unpaid local taxes by local authorities

The Local Finance Directorate, under the General Directorate of Local Authorities at the Ministry of the Interior, has launched a large-scale operation to recover overdue local tax debts exceeding MAD 41 billion.

The initiative primarily targets the regions of Casablanca-Settat and Marrakech-Safi, where tax debts—some dating back more than a decade—have accumulated. Among those under scrutiny are elected officials who themselves owe outstanding taxes.

To address this issue, local tax offices have been mobilized to review archives of tax declarations and obligations, update records, and identify debtors for legal enforcement. The outstanding debts include various taxes related to the temporary exploitation of public property, municipal levies, and other local fees.

In response to the growing challenge, authorities have reinforced their tax collection teams by assigning additional personnel to analyze past tax filings and facilitate the recovery process.

A review of the debt collection archives has revealed significant shortcomings in tax processing. Many procedures related to the study and liquidation of unpaid debts were never completed, in direct contradiction with ministry directives.

Additionally, several local leaders have failed to settle outstanding debts, whether through full or partial payment, exemption, or cancellation. In many cases, administrative justifications have been provided for non-collection, including a lack of sufficient human resources and challenges in enforcement due to procedural errors.

Faced with these irregularities, central government authorities have urged local councils to comply with the updated regulations under Law No. 47.06 on Local Authorities. They have also emphasized the need to prioritize debt recovery based on the feasibility of collection rather than the absolute value of the debt.

This push for stricter enforcement is aimed at ensuring financial liquidity for local governments, particularly since the share of VAT revenues allocated to municipalities has recently increased from 30% to 32%.

Reports submitted to the Local Finance Directorate have also revealed serious violations involving elected officials who have evaded significant tax payments. Among the findings, several cafe and restaurant owners, who are also members of local councils, have failed to pay the required fees for occupying public spaces.

Unpaid taxes on undeveloped urban land have also surfaced, with some plots belonging to officials or being located in areas managed by their political allies. Additionally, certain officials have neglected to pay rent for municipal properties, which they or their family members have leased in their name.

These violations have been particularly prevalent in the Casablanca-Settat and Marrakech-Safi regions, where some officials have allegedly used their political and electoral connections to avoid taxation. As authorities intensify enforcement efforts, the success of this campaign could mark a turning point in strengthening financial accountability within Morocco’s local governance system.