Morocco: Morocco’s Local Tax Reform: Unlocking Efficiency and Equity through Draft Law No. 14.25

With Draft Law No. 14.25, Morocco is taking a decisive step toward modernizing its local tax system. This reform aims to overhaul the legal and operational foundations set by Law No. 47.06, adopted in 2007, which governs taxation by local authorities. The initiative responds to long-standing challenges in collection efficiency, legal clarity, and territorial equity.

The draft law proposes a more streamlined and transparent tax framework. It reduces the number of local levies, consolidates overlapping provisions, and establishes clearer definitions of taxable bases. One major innovation is the reclassification of real estate categories, better aligned with current land use and market values, which should enhance fairness and predictability in tax assessments.

Importantly, the reform introduces greater fiscal autonomy for municipalities by allowing them to set certain rates within national limits. This local empowerment, grounded in subsidiarity, should improve responsiveness to economic and territorial conditions.

Technologically, the draft law paves the way for the digitization of local tax administration. It promotes interoperability between tax departments, land registries, and cadastral services, enabling more accurate data exchange and facilitating tax collection and auditing.

The reform also places a strong emphasis on tax justice. By eliminating obsolete exemptions and improving categorization of taxpayers, it seeks to ensure a more balanced distribution of the tax burden, especially in rapidly growing urban zones. Legal certainty is reinforced through more structured appeal and litigation procedures, reducing ambiguity for taxpayers and public entities alike.

Beyond technical improvements, Draft Law No. 14.25 reflects Morocco’s broader strategy to modernize public finance, promote decentralization, and attract local and foreign investment. It sends a clear signal to both citizens and businesses that local taxation will become more efficient, equitable, and development-oriented.

Ultimately, this reform could serve as a benchmark for other emerging economies seeking to harmonize fiscal decentralization with sound governance and economic competitiveness.

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Reference/Citation

1. Draft Law No. 14.25 amending and supplementing Law No. 47.06 on the taxation of local authorities. | Ministry of the Interior of the Kingdom of Morocco.

2. Press Release of the Government Council dated June 6, 2025. | General Secretariat of the Government www.sgg.gov.ma  

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