Moroccan Minister of Interior, Abdelouafi Laftit, has called on regional governors and prefects to issue decisions regarding the tax on undeveloped land. This initiative comes after observing dysfunction in the collection mechanisms of this local tax, which has led to prolonged disputes.
The tax on undeveloped land aims to strengthen the financial autonomy of local communities, but its administration has been ineffective in many municipalities. Disputes related to this tax often end up in courts, which mostly rule in favor of the landowners concerned.
Laftit sent a message to governors and prefects to update all data related to this tax, including the number of disputes, results of court decisions, and reasons for their cancellation.
According to media reports, taxes on unused land areas are evaporating due to some maneuvers involving fictitious addresses of owners, allowing taxpayers to evade local taxes.
Municipalities face serious financial, administrative, and legal problems in collecting this local tax. Some municipalities are expanding the list of exemptions despite the Ministry of Interior’s recommendations that clearly define which urban lands are excluded from the scope of local tax application.
This move by the Ministry of Interior aims to improve tax collection and enhance the financial resources of local communities while ensuring fair and effective application of the law.
The initiative reflects the government’s efforts to address the challenges in local tax administration and strengthen the financial stability of territorial communities. It also highlights the ongoing struggle to balance tax collection with fair treatment of property owners, a common issue in many developing economies.