Local taxation: Reform coming soon

As part of the tax reform package, the issue of parafiscal taxes still needs to be addressed. According to the schedule, this will be addressed in the 2026 Finance Bill. This year, the Ministry began by dealing with the parafiscal tax on cement and, before that, with the section on tourism.

Voluntary regularization

For the Minister in charge of the Budget, it is necessary to continue this work. Fouzi Lekjaâ agrees with the position of certain members of Parliament, considering that local taxation needs a major overhaul. «The texts are ready», he said. The Minister of the Interior will introduce them shortly. The aim is to ensure complementarity and efficiency, and to guarantee a doubling of tax resources for local authorities. Local authorities are seen as essential players in the development process. And as such, the two-point increase in VAT is not the only thing that needs to be done. In the same vein, the Minister spoke of the major operation to implement a tax amnesty aimed at encouraging taxpayers to voluntarily regularize the situation of their income and profits subject to tax and not declared before January 1, 2024.

This involved the payment of a unified contribution of 5% of the value of declared assets and expenses. This led to exceptional results, far exceeding initial forecasts. The amnesty operation resulted in the declaration of a total of 127 billion dirhams (USD 12.7 billion). This windfall is divided between 77 billion dirhams (USD 7.7 billion) realized via bank declarations, and 48 billion dirhams (USD 4.8 bi

llion) from direct declarations to the General Tax Directorate. In addition, MAD 2 billion (USD 200 millions) was generated by property and assets held abroad. «This operation will boost the Treasury’s financial resources by more than 6 billion dirhams (USD 600 million) and consolidate confidence between taxpayers and the tax authorities», said the Minister in charge of the Budget.

Mohamed CHAOUI