Morocco Plans Major Local Tax Reform to Boost Revenue and Simplify System

All professionals in the sector, including the administration, agree on the impact of the tax burden on the climate of trust between the taxpayer and the administration, and its repercussions on municipal revenues, considered lower than the average of countries with an equivalent economy.

According to Khalid Safir, wali director general of local authorities within the Ministry of the Interior, quoted by L’Économiste, the primary objective of the overhaul is to simplify the current tax provisions, and allow local authorities to generate revenues in line with the growing financing needs.

Several factors have contributed to this state of affairs, hence the need for a reform that should, this time, facilitate the taxpayer’s adherence, taking into account the multitude of taxes and the economic competitiveness.

It should be recalled that the share of local tax revenues in GDP is 3.5%, while the average recorded in countries of similar caliber is 5% to 6%.