2018 State Budget:

Tax dept to generate FCFA 1845 billion

-FCFA 800 billion for customs

DG of Taxation, Mopa Fatoing

As has always been the case, a good chunk of the 2018 state budget will have to be generated by the taxation department. This year the taxation department is expected to generate FCFA 1845 billion to finance the state budget.

                To meet this objective tax officials have adopted various strategies to broaden the tax base and ensure revenue collection.

                One of the measures is an increase in airport duty on international flights from 10.000 Fcfa to 25000 Fcfa. Other areas are games of chance and enter attainment, automobile stamp duty (vignette) and taxes on non-retainable packages (liquid and gaseous products).

                To check tax evasion and fraud, the DGT has introduced the payment of taxes through bank transfers and not in cash directly to taxation agents as was the case before. Also, tax declaration is now done online and not through assessment by tax assessors, most of whom often preferred to line their pockets rather than fill the state coffers.

                For its part the customs department will have to generate 800 billion in 2018, this despite the coming into force of the Voluntary Partnership Accords with the EU.

                Even since the VPAs went operational in 2015 the customs department has recorded a marked drop in revenue collected. This is because of the customs exoneration granted to some goods imported from the EU.

                However, customs officials say this is not much of a problem as other strategies have been adopted to make good the lag.