The development of the local tax system is an important challenge to be taken up within the framework of the process of advanced regionalization capable of enabling local authorities to accomplish their missions, said Tuesday in Rabat, the Minister of the Interior, Abdelouafi Laftit .
In response to an oral question before the Chamber of Councilors on the reform of the local tax system, Laftit pointed out that Law No. 07-20 amending and supplementing Law No. 47-06 relating to the taxation of local authorities adopted by the Chamber Councilors in December 2020, provides for provisions aimed at developing the local tax system with the aim of strengthening the revenues of local authorities.
In this sense, the Ministry of the Interior has taken a series of measures, including the establishment of a regulatory framework for the electronic declaration and payment of territorial royalties, the adoption of an integrated digital system for the management of revenues of local authorities, and the publication of a circular on the application of Law No. 47-06 on the taxation of local authorities, he added.
And to continue that the services of the Ministry of the Interior work in partnership with the general treasury of the Kingdom, in the development of a “GIR_Reporting” system for the local authorities, which would allow all the stakeholders, in particular the expenditure authorizing officers, to track revenue collection.
Regarding the measures that can be taken to solve the problem of the inability of traders to pay the accumulated contributions related to local government taxes and fees following the repercussions of the Covid 19 pandemic, the Ministry of the Interior has taken the initiative, according to Laftit, to support local authorities in order to deal with the negative effects of the state of health emergency.
These measures concern in particular the repercussions of the state of health emergency on the application of penalties, linked to the financial resources managed by local authorities and the formulation of opinions on the questions of certain expenditure authorizing officers in terms of local taxation.
The Ministry has also worked to harmonize the legal deadlines for the declaration or payment of certain taxes in favor of local authorities, in particular the fees imposed on the temporary occupation of collective property, as well as the possibility of reducing the sums paid or to be paid for rental of collective public facilities.
According to Law No. 07.20 relating to the taxation of local authorities, taxpayers benefited during the year 2021 from the cancellation of tax debts due to communities which are subject to recovery and whose amount is equal to or less than two hundred (200) dirhams, or for which a partial collection resulting in unpaid equal to or less than two hundred (200) dirhams, in addition to the cancellation of fines, penalties, surcharges and late payment interest.
It is also a question of the cancellation of increases, fines, penalties and recovery costs relating to taxes, fees, rights, contributions and fees due to local authorities not collected before January 1, 2020, provided that the debtors concerned pay the original of these taxes, fees, duties, contributions and royalties no later than June 30, 2021.
With regard to the measures taken for the reform of local taxation, the Minister indicated that Law No. 07.20 had been promulgated to modify and supplement Law No. 47.06 relating to the taxation of local authorities, within the framework of the implementation implementation of the recommendations of the national debate on taxation held on 3 and 4 2019 in Skhirat, as well as the publication of a circular from the Ministry of the Interior of 5 May 2021 relating to the application of law n ° 47.06 relating to the taxation of local authorities, as amended and supplemented by Law No. 07.20.
The regulatory framework for the electronic declaration and payment of royalties procedure was also implemented, which allows declarations to be filed and royalties to be paid electronically, as well as the holding of working sessions with the various stakeholders in local taxation, in particular the General Directorate of Taxes and the General Treasury of the Kingdom.
And to emphasize that the ministry wanted to support the local authorities in order to better manage finances in the light of the exceptional economic conditions experienced by the Kingdom, adding that the local authorities have been requested, through the budget preparation circular for the year 2023, to rationalize their expenses and meet their financial obligations.
The ministry responded favorably to the requests of several local authorities in order to meet their financial obligations by granting this year, 800 MDH to some 370 local authorities, underlined Laftit, calling on the local authorities, which find financial difficulties for the execution of the final decisions of justice rendered against them, to conclude consensual agreements with the parties concerned.