Casablanca’s $770 Million Debt Crisis: Property Tax Revenue Soars Amid Municipal Mismanagement

Tax revenues from real estate and property have continued to increase each year, due to the town hall’s outstanding debts with debtor companies. The recovery reached 7.7 billion dirhams last year, or two billion dirhams more than the city’s annual budget. This annual budget is around 5.7 billion dirhams, reports the daily Assabah.

It is considered that it is the negligence of the municipal services that is at the root of these debts. The agents have difficulty applying the laws in this matter, in order to compel the creditors to settle. The deficits in local taxes and duties concern several areas. 151 million dirhams in rental tax revenues were recovered last year by the Municipal Council, while various taxes already amount to 120 million dirhams. Meanwhile, the housing tax has reached a recovery deficit of 98 million dirhams, as well as the development tax which amounts to 78 million dirhams.

The finance committee, after studies, recommended to the City Council to mature the reflections on the effective means to be used to settle the debts within a reasonable time. This negligence forces the town hall to pay 290 million dirhams every year for three bank loans contracted with Moroccan and foreign financial institutions.