Togo to Halve Customs Duties on Industrial Diesel in 2025

Energy

Wednesday, 04 December 2024 13:51

Togo to Halve Customs Duties on Industrial Diesel in 2025

(Togo First) - In Togo, customs duties on industrial diesel will be halved next year. The change was outlined in the 2025 draft finance law, which Lomé approved last week.

The amendment will take effect on January 1. It will apply to diesel that fuels the machinery and non-road mobile equipment used by extractive and manufacturing companies. The cut aims to boost local industry, including projects like the Plateforme Industrielle de Adétikopé.

For traceability purposes, the diesel will be blended with colorants and tracers. The Ministry of Trade will oversee controls. Lomé plans to publish a list of eligible companies and their authorized annual diesel volumes through an interministerial decree, based on proposals from the Togolese Revenue Office (OTR). Companies must meet strict criteria, including being registered in Togo and having dedicated storage tanks for this type of diesel.

The government has warned that violations of this measure will lead to penalties as outlined in the Customs Code and other applicable laws. In Lomé, officials believe this initiative will enhance the competitiveness of Togolese companies and stimulate economic activity, although the potential cost of the measure has not been disclosed.

Due to shifts at the international level, diesel prices have fluctuated significantly in Togo in recent years. For instance, in March 2022, the price per liter increased from 520 to CFA605, reaching a peak of CFA850 by July 2022. In January 2023, the government adjusted the price to CFA775 to mitigate impacts on consumers, especially industries. The government currently subsidizes diesel at a rate of CFA239 per liter.

Fiacre E. Kakpo

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.