Togo: Non-Tax Revenues Surge Spurred by Arrears

Public finance

Friday, 23 August 2024 17:22

Togo: Non-Tax Revenues Surge Spurred by Arrears

(Togo First) - Togo raked up CFA144.50 billion in non-tax revenues last year, against an annual target of CFA60.07 billion. In 2022, the country had mobilized CFA58.98 billion in non-tax revenues, according to a recent Ministry of Economy and Finance report.

The strong growth in non-tax revenues, which are not linked to taxes but to considerations such as remuneration for services rendered, miscellaneous income, and dividends, is mainly attributable to the collection of non-tax arrears from previous years. These arrears brought in CFA83.22 billion, or 138.56% of forecasts.

Business and estate income represented a significant share of these arrears. These revenues, derived from commercial and industrial activities and the management of the State's real estate assets, reached CFA106.19 billion in 2023, compared to CFA18.06 billion in 2022, a more than five-fold increase (487.98%).

Rental income from state-owned buildings generated CFA29.96 billion in 2023, almost 500 times more than in 2022 when it stood at just CFA0.06 billion. Mining royalties also increased by more than 26 times, rising from CFA1.73 billion in 2022 to CFA45.33 billion in 2023.

Over the past year, tax revenues (taxes and duties) were around CFA1,000 billion.

Ayi Renaud Dossavi

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.