Togo Collected CFA368.32 Billion in Tax Earnings in H1 2023, up by 5.8% YoY

Public finance

Monday, 21 August 2023 15:28

Togo Collected CFA368.32 Billion in Tax Earnings in H1 2023, up by 5.8% YoY

(Togo First) - Over the first half of this year, the Togolese Tax Office collected and contributed to the State budget CFA368.32 billion in tax revenues. This is 5.8% more than the figure recorded in the same period, last year, which is CFA348 billion. The data was disclosed by the Ministry of Economy and Finance.

Tax revenues collected over the first six months of 2023 represent 48.1% of the annual target–CFA912 billion.

The year-on-year increase is attributable to efforts to modernize the tax administration and enhance the collection of taxes and duties.

The revenues collected over the period under review break down into CFA200 billion collected by the tax commissioner’s office (up from CFA196 billion in H1 2022), and CFA168.13 billion collected by the customs department (against CFA152.25 billion).

Most of the tax revenues come from turnovers (value-added tax and financial transaction tax) for domestic taxing and from value-added tax on imported goods for external taxing. Combined, these taxes amounted to 116 billion in H1 2023, against 128 billion the year before, over the same period.

Customs duties are the next most important contributors to Togo’s tax income. They stood at CFA61 bullion in H1 2023. Right behind them came corporate tax revenues which stood at CFA59 billion.

Despite the evident progress, significant challenges remain, regarding taxation. Indeed, Togo’s tax burden remains below the 20% standard for the region. To improve this situation, Lomé, repeatedly, reiterated its commitment to expand its tax base and modernize tax collection mechanisms. By 2025, the country hopes to bring this tax base to 15%, against 13.6% in 2021. The ambition has been set under its tax office’s 2023-2025 strategy.

Fiacre E. Kakpo

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