Moroccan local authorities crack down on billions in long-unpaid taxes and fees

Local authorities across three major Moroccan regions have launched a large-scale campaign to recover billions of dirhams in unpaid taxes and fees dating back more than 15 years, sources told Hespress Ar.

The sweeping recovery effort is underway in the Casablanca-Settat, Marrakech-Safi, and Fes-Meknes regions. Municipal financial departments and tax collection units are combing through old declarations and records that were never properly reviewed or settled.

So far, the campaign has led to the recovery of tens of billions of dirhams, funds previously written off as lost. The reclaimed revenue is now being redirected to finance local development projects and municipal agreements.

Officials involved in the operation are meticulously updating and cross-checking records, working in coordination with other government entities to locate debtors and enforce payments. Particular focus is being placed on debts that are not subject to statutory expiration, ensuring that municipalities can legally reclaim overdue amounts.

Municipal leaders are working to resolve outstanding cases through various channels, including full payments, installment plans, exemptions, or cancellations, depending on the legal and financial context of each case.

To ensure accountability, regular progress reports are being compiled by fiscal year to track the clearing of historical files and reset the books for upcoming budget cycles.

The recovery effort follows the recent implementation of Law 14.25, which updates the regulatory framework for local tax collections. Interior Minister Abdelouafi Laftit has directed officials to prioritize debt recovery not solely by the size of the owed amount but also based on risk, to help secure the financial health of local governments.

Sources also reported that governors have issued formal warnings to municipal leaders who failed to forward unresolved debtor cases to tax collectors for compulsory enforcement procedures.

The Ministry of Interior has strongly backed the campaign, aiming to reduce reliance on central government funding by unlocking long-overdue revenue and strengthening municipal governance.

However, the campaign has also uncovered alleged irregularities in how some municipalities granted tax exemptions. In several cases, officials reportedly waived fines and penalties linked to local taxes, costing local budgets millions of dirhams and contributing to fiscal deficits.

Some municipal leaders are now under scrutiny for allegedly misusing Law 82-17, which governs tax exemptions. According to the allegations, exemptions were selectively granted to allow certain debtors to pay only their original dues, avoiding surcharges and collection fees altogether.