Togo: Government considers taxing drilled boreholes

Economic governance

Friday, 22 December 2023 12:44

Togo: Government considers taxing drilled boreholes

(Togo First) - The Togolese government is considering taxing boreholes, in a bid to better manage water resources nationwide. The project was discussed on December 20 at the Council of Ministers. On the occasion, the Minister of Water made a presentation on the Integrated Water Resources Management Fund (Fonds de Gestion Intégrée des Ressources en Eau - Fonds-GIRE).

"The Head of State has instructed the government to carry out a reflection for the case of households that use drilled groundwater, making sure the quality of the water extracted meets standards of quality for drinking and household use, and taking into account the need to rationally use water resources," the government said at the end of the meeting.

Domestic consumption exempted

If implemented, the tax will not apply to domestic use. "Households will not be taxed for their domestic consumption," revealed Yawa Kouigan, Minister of Communication and government spokesperson. However, the authorities will ensure that the water they get is of good quality. To this end, control missions are planned, in the Greater Lomé area especially. The government’s concerns arise amidst a rapid rise in borehole digging in this area; a situation that raised concern about the quality and overexploiting of water resources.

It is worth recalling that a few months ago the Minister of Water and Village Hydraulics, Yark Damehane, mentioned the possibility of setting up a "water police" which would monitor boreholes in Greater Lomé.

GIRE and Tinga Fund management

Another instruction given by President Gnassingbé was to proceed to the “collegial” management of the Fonds-GIRE and the Fonds Tinga (for rural electrification) while maintaining "their sectoral autonomy."

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REFORMS OVERVIEW

STARTING A BUSINESS (more info)

At the fifteenth position, worldwide, and first in Africa, under the Starting a Business index of the 2020 Doing Business ranking, Togo sustains its reformative dynamics with more reforms….

ENFORCING CONTRACTS (more info)

Compared to some years ago when it was one of the lowest rankers under the Doing Business’ Enforcing Contracts indicator, Togo, leveraging many efforts to improve its business climate, was able to jump significantly on the index in the recent years... .

CONTRACT EXECUTION (more info)

Creation of special chambers of commerce for small debts • Creation of chambers of commerce at the Court of Appeal • Civil and commercial cases now handled by distinct clerks • Establishment of commercial courts in Lomé and Kara • Lawyers and bailiffs now have access to the FORSETI COMMERCIAL platform • A maximum period of 100 days was fixed to settle a commercial dispute .

TRADING ACROSS BORDERS (more info)

In comparison to previous years,Togo has significantly improved its ranking under the“Trading across borders” indicator by adopting multiple reforms that focus mainly on the digitization and reduction in delays, for import and export procedures related to import and export.

In comparison to previous years, Togo has significantly improved its ranking on the “Trading across borders” index by adopting multiple reforms that focus mainly on the digitalization and reduction in delays, for import and export procedures related to import and export.

CONSTRUCTION PERMIT (more info)

After moving from the 133rd to 127th place under the 2020 Doing Business’ construction permit index, Togo intends to reiterate this feat in the coming edition of the global ranking. To this end, it has introduced this year multiple reforms.

GETTING ELECTRICITY (more info)

Over the past two years, Togo’s ranking under the Doing Business’ Getting electricity and water indicator has increased consistently. Owing this performance to multiple reforms aimed at making it easier for businesses to access power and water, Lomé plans to introduce even more reforms this year to keep up its improvements.

REGISTERING A PROPERTY (more info)

Out of all the 'Doing Business’ indicators, Property Registration is where Togo has improved the most since 2018. Indeed, after spending years in the lowest part of this ranking, the country now seeks to beat Rwanda which is the best performer on this index in Africa. To do so, Lomé has been introducing many reforms, with the latest batch implemented this year.

PUBLIC PROCUREMENT (more info)

From professionalization to digitization, through legislative regulations, Togo’s public procurement framework is constantly being modernized. Several reforms have been implemented to improve the sector much to the benefit of the private sector, which is the focus of the National Development Plan.

PAYING TAXES AND DUTIES (more info)

To improve its business environment, Togo introduced some important reforms related to the payment of tax and duties. From the replacement of some taxes to the cancellation of others through exemptions, the country has only one objective: offer the most attractive tax framework to investors and economic operators. To achieve this, the authorities relied on digitization.