Lawmakers back local tax reform, urge swift implementation

Parliamentary majority groups in Morocco’s House of Representatives voiced their support Tuesday for draft bill No. 14.25, which amends the country’s local taxation law (Law 47.06), calling it a crucial step toward boosting municipalities’ financial independence and ensuring fairer tax practices.

During a parliamentary session attended by Interior Minister Abdelouafi Laftit, lawmakers emphasized the urgent need to enforce the proposed measures and curb tax evasion, particularly concerning undeveloped urban land.

Mohamed Chaouki, head of the National Rally of Independents (RNI) group, described the bill as a “major leap” despite targeting only two articles of the existing law. He argued the proposal lays the groundwork for a broader overhaul of local taxation that aligns with international standards and supports the financial autonomy of municipalities.

Chaouki highlighted the bill’s intent to delegate certain tax collection responsibilities to the General Directorate of Taxes, which he said would “clearly define institutional and legal accountability” and modernize the system.

Regarding the taxation of undeveloped urban land, Chaouki noted these plots “represent untapped revenue potential,” and urged parliament to approve the bill to meet pressing local development goals.

Ahmed Touizi, president of the Authenticity and Modernity (PAM) group, also backed the reform, saying current taxation mechanisms suffer from inconsistencies that undermine both tax justice and regional equity. “This bill is a pivotal moment in modernizing the local tax system,” Touizi said, stressing the need for transparency and digital transformation in tax collection.

He pointed out that housing tax revenues have increased from MAD 4 to 6 billion, but remain below potential due to outdated collection procedures and delayed enforcement. Touizi also called for unifying tax procedures and resolving long-standing treasury cases to improve fiscal efficiency.

Fatima Sayyida, from the Istiqlal for Unity and Egalitarianism group, said local development is hindered by structural and governance challenges. She emphasized the role of local tax reform in promoting equity and urged further legislative updates, especially on electoral laws and financial devolution to regional and municipal authorities.

All three majority groups urged the Interior Ministry to issue implementing circulars swiftly and ensure the reforms reflect regional land value differences, warning that “time is of the essence.”