Togo: Tax Authority Raised Nearly CFA1,000 Billion in 2023

Public finance

Friday, 23 August 2024 17:19

Togo: Tax Authority Raised Nearly CFA1,000 Billion in 2023

(Togo First) - Togo’s tax body, Office Togolais des Recettes (OTR), collected CFA990.1 billion in 2023. This is about 90 billion more than it aimed for the year (CFA912.1 billion).

Over the year reviewed, the OTR gathered CFA226.86 billion from income, profits, and capital gains taxes, and 493.07 billion FCFA from domestic taxes and duties on goods and services, according to the "Rapport d'exécution du budget de l'Etat exercice 2023 situation à fin décembre."

Duties and taxes on foreign trade and international transactions. Additionally, stamp duties and registration fees contributed CFA13 billion, while other taxes, including payroll and wealth taxes, brought in just over CFA19 billion.

Year-on-year, revenues collected by the OTR were up by 15% - a performance attributable to new strategies implemented by Philippe Tchodié and his team. Last year, the OTR reorganized its tax services by creating tax operations offices in every commune of Greater Lomé and each prefecture across the country, following a nationwide tax census conducted in 2022.

The effective connection of the Togolese customs information system with those of Mali, Benin, Niger, and Burkina Faso has also helped improve the monitoring of transit and combat the dumping of goods. Strengthening tariff specification codes has further aided in better controlling the customs value of goods.

This year, the OTR’s boss expects tax revenues to stand at CFA1,042 billion. This would account for 48% of the fiscal 2024 budget of CFA2,179 billion. In the first quarter of 2024, tax revenues are already estimated at CFA207 billion.

Esaïe Edoh

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.