Minister of the Interior Reveals New Rates for Urban Land Tax and Bans Local Authorities from Collecting Housing and Service Fees

Minister of the Interior, Abdelouafi Laftit, revealed the main points of the draft law No. 14.25 amending and supplementing law No. 47.06 concerning the taxation of local authorities. This draft law was presented today, Tuesday, before the Interior Committee in the House of Representatives.

This project is part of the completion of local tax reforms that began in 2002, alongside major changes in the decentralization system, which culminated in the implementation of law No. 47.06 in 2008. This amendment is aligned with the royal directives that stress the need to reform the tax and financial systems of local authorities to enable them to effectively carry out their developmental roles.

One of the key developments in this project is the restructuring of tax collection tasks for local authorities. Responsibility for managing the professional tax will be fully transferred to the General Directorate of Taxes, which has extensive expertise in this field. Additionally, the responsibility for managing housing taxes and service fees will be transferred to the General Treasury of the Kingdom, based on the evaluation of the transitional phase following the implementation of law No. 07.20 in 2021.

The purpose of these amendments is to leverage the accumulated expertise of both the tax administration and the General Treasury, enhancing coordination between the taxes of local authorities and the standards applied to state taxes, especially in areas such as collection, monitoring, and e-services.

Regarding taxes on unbuilt urban land, Laftit announced a revision of the rates, which have remained unchanged since 2008. The minister proposed three new pricing levels based on the degree of infrastructure in the areas:

  • 30 dirhams per square meter for land in fully equipped areas.
  • 15 dirhams per square meter for land in moderately equipped areas.
  • Only 2 dirhams per square meter for land in poorly equipped areas.

He confirmed that the determination of these areas will be decided by the President of the concerned local council after the approval of the provincial or municipal governor.

In conclusion, the minister emphasized that these changes would improve the efficiency of financial collection, reduce uncollected amounts, and ensure proper enforcement of the law through a clarifying circular to local officials. This project is expected to be a crucial step towards achieving a fairer and more effective local taxation system, which will contribute to sustainable development across various regions of the kingdom.

Source: Fes News Media

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